Reports that are designated as “preliminary” are not included. 700 to 899-pound Medium and Large Frame #1-2 feeder steersĪll feeder cattle auction, direct trade, video sale and Internet sale transactions within the 12-state region for which the number of head, weighted average price and weighted average weight are reported are used in the Index calculation.Īll direct trade reports are considered Friday transactions. 700 to 899-pound Medium and Large Frame #1 feeder steers.The Index is based upon transactions from the USDA-AMS Feeder Cattle Reports, and the cattle included in the Index must meet the following criteria: USDA-AMS summaries and sales reports are available on the USDA webpage: /market-news/livestock-poultry-grain#Cattle By defining the area and type of cattle used for calculating the Index, CME provides a reliable and publicly available benchmark for market participants to reference when making risk management decisions. Iowa, Kansas, Missouri, Montana, Nebraska, New Mexico, North Dakota, Oklahoma, South Dakota, Texas and Wyoming. The states included in the Index are Colorado, The data used to calculate the Index is collected and reported by the USDA’s Agriculture Marketing Service and is publicly available. The data used by CME to calculate the Index facilitates convergence - the tendency of the cash and futures prices to come together as the futures contract nears expiration - to the weighted average price of feeder cattle sold across 12 major feeder cattle-producing states. The Index underlies the CME Feeder Cattle futures contract. The Feeder Cattle Index broadly represents the price of cattle purchased by feedlots that will likely grade select or higher, be placed on feed for an extended period, and finally marketed “Placements are steers and heifers put into a feedlot, fed a ration which will produce a carcass that will grade select or better, and are intended for the slaughter market.” Or as defined by the USDA in the monthly “Cattle on Feed” report: The CME Feeder Cattle Index (Index) is intended to serve as a benchmark for the price of cattle being placed on feed at the feedlot.
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