Indiana Purchase and Maintenance Agreement for Cattle - Feeder Contract

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US-01157BG
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Beef is raised in three phases before it is processed: calves are raised on pasture and range land, as feeder cattle they feed on pasture, crop residue, and range land, and finally they go to feedlots, where they are fattened for slaughter. Feeder contracts are a type of futures contract based on young cattle that are sent to feedlots in preparation for slaughter. The Chicago Mercantile Exchange first introduced a feeder cattle contract in 1971.


It is important make sure the agreement is clear as to whether a bailment or an actual sale of the animals is intended. In order to constitute a bailment and not a sale, a fattening or raising agreement should provide that the owner agrees to provide the animals involved to the feeder with the owner retaining title to the animals, and the feeder or raiser is to feed or raise them for sale as the owner deems proper. This form is a sample of a sale rather than a bailment.

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  • Preview Purchase and Maintenance Agreement for Cattle - Feeder Contract
  • Preview Purchase and Maintenance Agreement for Cattle - Feeder Contract
  • Preview Purchase and Maintenance Agreement for Cattle - Feeder Contract
  • Preview Purchase and Maintenance Agreement for Cattle - Feeder Contract
  • Preview Purchase and Maintenance Agreement for Cattle - Feeder Contract
  • Preview Purchase and Maintenance Agreement for Cattle - Feeder Contract
  • Preview Purchase and Maintenance Agreement for Cattle - Feeder Contract

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FAQ

Feeders Refers to weaned calves grazing pasture and of sufficient weight and maturity to be placed on high-energy rations for finishing; they are generally older, weigh more, and carry more condition (finish) than stockers. Slaughter Cattle Refers to cattle grazing on pasture and suitable for slaughter.

After attaining a desirable weight, feeder cattle become finished cattle that are sold to a packer (finished cattle are also called fattened cattle, fat cattle, fed cattle, or, when contrasted with carcasses, live cattle). Packers slaughter the cattle and sell the meat in carcass boxed form.

Feeder cattle futures contract specifications 0.025/cwt (0.025 cents per pound), worth $12.50 per contract. Feeder cattle futures are traded electronically on the Globex® platform Monday from a.m. U.S. ET to p.m. U.S. ET.

Feeder Cattle consist of calves weighing 600-800 pounds while Live Cattle are cattle fed to the point of harvest weight. A contract size is 40,000 lbs. for Live Cattle or 50,000 lbs. for Feeder Cattle, and they are priced in cents per pound.

Live cattle futures contract specifications. $0.025/cwt (0.025 cents per pound), worth $10.00 per contract. Live cattle futures trade electronically on the Globex® trading platform Monday a.m. U.S. ET to p.m. U.S. ET.

Feeder cattle futures contract specifications 0.025/cwt (0.025 cents per pound), worth $12.50 per contract. Feeder cattle futures are traded electronically on the Globex® platform Monday from a.m. U.S. ET to p.m. U.S. ET.

Feeders Refers to weaned calves grazing pasture and of sufficient weight and maturity to be placed on high-energy rations for finishing; they are generally older, weigh more, and carry more condition (finish) than stockers.

Feeder cattle prices depend on the weight of the cattle with lightweight cattle typically having the highest price per pound (or hundredweight) and lower prices for heavier cattle. Not only do prices vary across cattle weights but the size of the price adjustment depends on the weight of the cattle.

In a contract feeding agreement, the livestock owner usual- ly agrees to supply the livestock to be fed. The feeder agrees to furnish the feed, equipment and labor for winter- ing, and/or pasturing or fattening the animals. The purpose of the contract is to make provisions for: 2022 Handling and feeding.

A CME Feeder Cattle put option with the same expiration month and a nearby strike price of USD 0.9500 is being priced at USD 0.0600/lb. Since each underlying CME Feeder Cattle futures contract represents 50,000 pounds of feeder cattle, the premium you need to pay to own the put option is USD 3,000.

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Indiana Purchase and Maintenance Agreement for Cattle - Feeder Contract