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Live Cattle Commodity Trading
Live cattle commodity trading has been lucrative this last year in a bull market. Fundamental analysis of factors that influence the price of live cattle including the cost of feed, herd sizes, and weather is useful in live cattle commodity trading. So is technical analysis of the live cattle commodity market. Commodity and futures training will help you understand commodity prices and commodity futures in trading live cattle. Live cattle are cows from calf stage up to 600 to 800 pounds when they go to a feed lot to put on another 500 pounds or so and are called feeder cattle. Successful commodity investing in live cattle starts with a few basics.
Live cattle trade on the Chicago Mercantile Exchange as LC. Live cattle commodity trading is in lots of 40,000 pounds which translates to about 80 cattle. Prices are quoted per pound in increments (ticks) of $0.00025. Thus one tick comes to $10 (40,000 X $0.00025). As of this writing live cattle futures are trading at $95.075 for April settlement and as low as $90.425 for August settlement. These figures translate to around $3.8 million for a lot with movement of a dollar in price coming to $40,000 in profit or loss in trading commodities in live cattle. Technical analysis charts used in commodity trading are just as useful for live cattle futures as they are for stock trading, options trading or Forex trading. As in using Candlestick charting the use of technical indicators to evaluate market history tells traders what the market will do next.
The commodity market in live cattle derives information from a number of sources. Feed prices are critical to success in livestock management and to making a profit raising beef. When the price of grain/feed goes up ranchers often will cull their herds. This reduces their costs and reduces the supply of beef in the year to come for live cattle and in the months to come in case of feeder cattle. However, culling herds means slaughtering many animals and this brings a lot of beef to market all at once. This makes steak cheaper in the market and reduces the commodity price for feeder cattle and live cattle in the short term. When the winter weather on the Great Plains and Corn Belt is severe livestock numbers may not drop but the cold stress will slow weigh gain of animals, reduce profits for ranchers, and delay the amount of beef that will come to market. Successful commodity trading requires that you understand how ranchers operate and how herd size and temporary swings in beef supply will affect live cattle commodity trading.
2. Live cattle commodity trading has
been lucrative this last year in a
bull market. Fundamental analysis
of factors that influence the price
of live cattle including the cost of
feed, herd sizes, and weather is
useful in live cattle commodity
trading.
By: www.CandleStickForums.com
3. So is technical analysis of the live
cattle commodity market.
Commodity and futures training
will help you understand
commodity prices and commodity
futures in trading live cattle.
By: www.CandleStickForums.com
4. Live cattle are cows from calf stage
up to 600 to 800 pounds when they
go to a feed lot to put on another
500 pounds or so and are called
feeder cattle. Successful
commodity investing in live cattle
starts with a few basics.
By: www.CandleStickForums.com
5. Live cattle trade on the Chicago
Mercantile Exchange as LC. Live
cattle commodity trading is in lots
of 40,000 pounds which translates
to about 80 cattle.
By: www.CandleStickForums.com
6. Prices are quoted per pound in
increments (ticks) of $0.00025.
Thus one tick comes to $10 (40,000
X $0.00025).
By: www.CandleStickForums.com
7. As of this writing live cattle futures
are trading at $95.075 for April
settlement and as low as $90.425
for August settlement.
By: www.CandleStickForums.com
8. These figures translate to around
$3.8 million for a lot with
movement of a dollar in price
coming to $40,000 in profit or loss
in trading commodities in live
cattle.
By: www.CandleStickForums.com
9. Technical analysis charts used in
commodity trading are just as
useful for live cattle futures as they
are for stock trading, options
trading or Forex trading.
By: www.CandleStickForums.com
10. As in using Candlestick charting
the use of technical indicators to
evaluate market history tells
traders what the market will do
next.
By: www.CandleStickForums.com
11. The commodity market in live
cattle derives information from a
number of sources. Feed prices are
critical to success in livestock
management and to making a
profit raising beef.
By: www.CandleStickForums.com
12. When the price of grain/feed goes
up ranchers often will cull their
herds. This reduces their costs and
reduces the supply of beef in the
year to come for live cattle and in
the months to come in case of
feeder cattle.
By: www.CandleStickForums.com
13. However, culling herds means
slaughtering many animals and
this brings a lot of beef to market
all at once.
By: www.CandleStickForums.com
14. This makes steak cheaper in the
market and reduces the
commodity price for feeder cattle
and live cattle in the short term.
By: www.CandleStickForums.com
15. When the winter weather on the
Great Plains and Corn Belt is
severe livestock numbers may not
drop but the cold stress will slow
weigh gain of animals, reduce
profits for ranchers, and delay the
amount of beef that will come to
market.
By: www.CandleStickForums.com
16. Successful commodity trading
requires that you understand how
ranchers operate and how herd
size and temporary swings in beef
supply will affect live cattle
commodity trading.
By: www.CandleStickForums.com
17. Commodity trading software will
help the beginning commodity
trader. To get the most out of
online trading software it is best to
take Commodity and Futures
Training.
By: www.CandleStickForums.com
18. To keep current on herd sizes visit the
Department of Agriculture’s Cattle on
Feed Report. This routinely published
document will tell you how many
cattle there are in feedlots and how
many “live cattle” there are, namely
how many have been weaned and are
up to 800 pounds and still feeding on
grass.
By: www.CandleStickForums.com
19. Live cattle commodity trading is
dealing in a complicated
commodity market that, in the
end, feeds the nation.
By: www.CandleStickForums.com
20. Commodities trading in cattle will
always be there with profits to be
made by those who assess the
fundamental and technical analysis
correctly.
By: www.CandleStickForums.com
