Feeder Cattle Prices Today

CME feeder cattle futures (ticker symbol GF) track the expected value of feeder-weight cattle — steers and heifers typically weighing 600 to 900 pounds that are destined for feedlot placement. Each contract represents 50,000 pounds and is quoted in cents per pound. Unlike live cattle futures, feeder cattle contracts are cash-settled against the CME Feeder Cattle Index rather than through physical delivery. This means there is no delivery process — at expiration, positions are simply settled financially based on the index value.

Feeder cattle contract months are January, March, April, May, August, September, October, and November. These months align with the seasonal flow of cattle marketing, particularly the heavy fall run when spring-born calves are weaned and sold. Feeder cattle are the raw material of the beef feedlot industry. A 750-pound steer purchased at $260/cwt costs $1,950 per head. That animal will consume roughly 50 bushels of corn equivalent before reaching slaughter weight, making the relationship between feeder cattle prices and corn prices one of the most important spreads in agricultural markets.

The beef production chain follows a distinct path from ranch to plate. Cow-calf producers maintain breeding herds and sell calves at weaning, typically at 450 to 600 pounds. Stocker and backgrounder operators grow these calves on grass or lightweight rations to feeder weight — roughly 700 to 900 pounds. Feedlots then finish the cattle on high-energy grain rations for 120 to 180 days until they reach slaughter weight of 1,250 to 1,400 pounds. Packers purchase these finished (fed) cattle for processing.

Feeder cattle prices are derived from two primary inputs: the expected value of the finished animal (fed cattle price) and the cost to feed that animal to slaughter weight (primarily corn). When fed cattle prices are high and corn is cheap, feedlot margins are favorable and feedlots bid aggressively for feeder cattle, pushing feeder prices higher. Conversely, when corn prices spike, the cost of gain rises and feedlots reduce their bids for incoming cattle. This relationship is why experienced cattlemen say feeder cattle prices are where corn and fed cattle meet.

The CME Feeder Cattle Index is the settlement reference for feeder cattle futures. It is calculated by CME Group using USDA Agricultural Marketing Service auction data from a seven-state region: Texas, Oklahoma, Kansas, New Mexico, Colorado, Missouri, and Iowa. The index is a weighted average of feeder steer prices for animals weighing 700 to 849 pounds, with weighting based on the number of head sold at each reported auction.

The index is published daily and serves as the final settlement price for expiring feeder cattle futures. Because it reflects actual physical market transactions, basis between the index and individual auction results varies by location, weight, sex, and quality. Ranchers should track both the futures price and their local basis to the index when evaluating hedging opportunities. Understanding where your cattle typically trade relative to the index is essential for effective risk management.

One of the most important pricing concepts in the feeder cattle market is the weight slide — the decrease in price per pound as cattle get heavier. Lighter calves command a higher price per pound because they have more gain potential ahead of them. A 500-pound calf might sell for $290/cwt ($1,450 per head) while a 750-pound yearling brings $260/cwt ($1,950 per head). The heavier animal is worth more per head but less per pound.

The slide varies with market conditions. When corn is cheap and feedlot margins are favorable, the slide narrows because feedlots are willing to pay more per pound for heavier cattle that will be on feed for a shorter time. When corn is expensive, the slide widens because the cost-per-pound-of-gain is high and feedlots prefer lighter cattle that have more compensatory gain potential on cheaper rations. Understanding the current weight slide helps ranchers decide whether to sell calves at weaning or add weight as a stocker operation before marketing.