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Feeder cattle futures contracts, traded on the Chicago Mercantile Exchange (CME), can be used to hedge and to speculate on the price of feeder cattle. Cattle producers can hedge future buying and selling prices for feeder cattle through trading feeder cattle futures, and such trading is a common part of a producer's risk management program. [11]
The USDA grading system uses eight different grades to represent various levels of marbling in beef: Prime, Choice, Select, Standard, Commercial, Utility, Cutter, and Canner. The grades are based on two main criteria: the degree of marbling (intramuscular fat) in the beef, and the maturity (estimated age of the animal at slaughter).
Live cattle. Live cattle is a type of futures contract that can be used to hedge and to speculate on fed cattle prices. Cattle producers, feedlot operators, and merchant exporters can hedge future selling prices for cattle through trading live cattle futures, and such trading is a common part of a producer's price risk management program. [1]
Beef cattle. A young bull of the Blonde d'Aquitaine breed. Japanese wagyu bull on a farm north of Kobe. Beef cattle are cattle raised for meat production (as distinguished from dairy cattle, used for milk production). The meat of mature or almost mature cattle is mostly known as beef. In beef production there are three main stages: cow-calf ...
Feedlot. A feedlot or feed yard is a type of animal feeding operation (AFO) which is used in intensive animal farming, notably beef cattle, but also swine, horses, sheep, turkeys, chickens or ducks, prior to slaughter. Large beef feedlots are called concentrated animal feeding operations (CAFO) in the United States [1] and intensive livestock ...
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This simple method is sometimes used for cattle. The number of animal units represented by one or more head of cattle may be calculated by dividing their total body mass in kg by 454 (or dividing their weight in pounds by 1000). Thus an 800-pound steer would be considered equivalent to 0.8 animal units. [4] Estimation based on metabolic body size.
The cattle industry takes the position that the use of growth hormones allows plentiful meats to be sold for affordable prices. [24] Using hormones in beef cattle costs $1.50 and adds between 40 and 50 lb (18 and 23 kg) to the weight of a steer at slaughter, for a return of at least $25. [25]
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