Company

Spread

for Feeder Cattle

Min.

Deposit

Platforms

Offered

Account

Types

Spread

Type

Funding

Methods

Customer

Support

Execution

Details
CFDs are leveraged products and can result in the loss of your capital. Rankings are influenced by affiliate commissions. All information collected on 1/11/2017.

The Ultimate Guide to

Choosing a Broker
For Feeder Cattle

Not sure which broker is right for you?

Don’t worry - we’ve got you covered. In this guide, you’ll learn:

Ready?

Part 1

Why Choose
For Feeder Cattle?

scored best in our review of the top brokers for feeder cattle, which takes into account 120+ factors across eight categories. Here are some areas where scored highly in:

  • + years in business
  • Offers + instruments
  • A range of platform inc.
  • 24/7 customer service
  • Tight spreads from pips
  • Used by 0+ traders
  • Offers demo account
  • 0 languages
  • Leverage up to

offers one way to trade: . If you wanted to trade FEEDER CATTLE through copy trading or other means, skip to part two.

The two most important categories in our rating system are the cost of trading and the broker’s trust score. To calculate a broker’s trust score, we take into account a range of factors, including their regulation history, years in business, liquidity provider etc.

have a trust score, which is . This is largely down to them being regulated by , segregating client funds, being established for over years, and much more. For comparison:

Trust Score comparsion

Trust Score
Year Established
Regulated by
Uses tier 1 banks
Company Type Private Private Private
Segregates client funds

The second thing we look for is the competitiveness of the spreads, and what fees they charge. We've compared these in detail in part three of this guide.

Part 2

Who is (& Isn’t)
Suitable For

As mentioned, allows you to trade in one way: .

Suitable for:

  • Spread Betting
  • CFD Trading
  • Forex Trading
  • Social Trading

Not Suitable for:

To trade with , you'll need a minimum deposit of $. offers a range of different account types for different traders including a , .

Finally, isn't available in the following countries: . They do not offer islamic accounts either.

Part 3

A Comparison of vs. vs.


Want to see how stacks up against and ? We've compared their spreads, features, and key information below.



Spread & fee comparsion

The spreads below are illustrative. For more accurate pricing information, click on the names of the brokers at the top of the table to open their websites in a new tab.
Fixed Spreads
Variable Spreads
EUR/USD Spread
GBP/USD Spread
DAX Spread
FTSE 100 Spread
S&P500 Spread

Comparison of account & trading features

Spread type
EUR/USD Spread
EUR/GBP Spread
Crude Oil Spread
Gold Spread Private Private Private
DAX Spread

Part 4

Feeder Cattle Commodities Trading

Feeder cattle are cattle raised deliberately for beef production, using specific methods.

Once calves are born, they are set out to graze for between 6 and 8 months with the other cattle. When they achieve the required weight of around 600-800 pounds, they are placed in a feedlot, where they are fattened to prepare them for slaughter. The food types that they are fed on in order to assist their weight gain goals include sugar beet waste and grains. The rapid weight gain causes the marbling effect of the meat with the fat. This is desirable as the more it occurs, the higher the price.

The sizes of feedlots vary dependent on the farmers. Some are as little as 50, but others can go up to 50,000.

On average it usually takes around 3-4 months for the cattle to be fattened, with a target weight of around 1000-1200 pounds.

With the same gestation period as a human, a calf is born after 9 months and weighs between 50-100 pounds. Feeder calves are less than 1 year old; feeder yearlings are between 1 and 2 years. Both of these are often produced in a cow-calf operation (herd of cows kept by a farmer to produce calves for later sale.)

Modern Statistics for Feeder Cattle

Countries with the largest beef and veal production 2016 – Statista.com

Country – Metric tons

1. United States – 11,389,000

2. Brazil – 9,284,000

3. European Union – 7,850,000

4. China – 6,900,000

5. India – 4,250,000

6. Argentina – 2,600,000

How Is Feeder Cattle Traded?

There are various ways to speculate on the price of feeder cattle. One of the main methods for trading feeder cattle is through futures contracts. These instruments are an agreement for a quantity of the commodity to be purchased or sold for a specified price at a future date. In theory, a buyer would take delivery of the asset on the specified date, although this rarely occurs as the contract is sold prior to the end of the contract at the market price or settled in cash.

The Chicago Mercantile Exchange (CME) offer the futures contract for feeder cattle – CME Feeder Cattle Futures. The Open Outcry ticker is FC, and the electronic platform ticker from CME Globex is GF. A standard futures contract size is 50,000 pounds and the contract is settled in cash prior to the end of the term, ensuring that no delivery of the cattle is required.

IG Feeder Cattle CFD

IG Feeder Cattle CFD

In addition to trading futures, a more convenient way of trading the feeder cattle markets is via CFDs. These contracts for difference allow traders to speculate on the price movements of the futures contract. There are many regulated brokers that offer access to the feeder cattle markets via CFDs, including IG. A minimum trade requirement for an IG CFD is just $18.23 – with a minimum contract size of 1 contract, a margin requirement of 2.5%, and the value of one pip at USD 5 (14587.5 * 1 * 5 * 0.025% = $18.23). Note – live price taken from IG 28/08/2017.

What Influences the Cattle Market?

Prices have risen quite fast over the last few years with the growth of overseas exports. Apart from this rising demand, there are several other factors which will see a shift in the price of feeder cattle. A few examples of these are listed below:

  • Price of Feed. Traders wishing to invest in this commodity must pay attention to the price of corn, soybean, and wheat as highly priced feed stocks will cause meat prices to fall. If the feed stock is too high it results in the cattle going to the slaughterhouse at a younger age.

  • Weather. The weather can also determine the price of cattle. This is because if the temperature is too high it can not only kill the feed but also make it difficult for the cattle to gain weight thus the price drops.

  • Disease. Diseases such as Bovine Spongiform Encephalopathy (also known as mad cow disease or BSE) can be devastating, rapidly causing herds to be significantly depleted.

Conclusion

For traders wishing to invest in the marketplace for feeder cattle can opt for trading futures, CFDs and other financial instruments. Regulated brokers that offer access to these products include IG and CMC Markets. To place an informed trade, it is vital to understand factors affecting the supply and demand the beef industry. How cattle is fed and reared, weather and disease are amongst the factors affecting price movements in this market.


Jump to top
Loading icon