Feeder Cattle Futures Price Today (GF=F)
2023.03.04 06:02
Feeder cattle, also known as store cattle in some countries or regions, are young cattle that are mature enough to either undergo backgrounding or be fattened prior to slaughter. The term frequently implies an intention to sell to other owners for gaining weight.
Backgrounding takes place in backgrounding operations, while fattening takes place in a feedlot. Feeder calves are calves younger than one year; feeder yearlings are somewhere in the range of 1 and 2 years of age. In most cases, a cow-calf operation is used to produce both kinds.
Feeder cattle become finished cattle when they reach a desired weight and are sold to a packer (finished cattle are also referred to as fattened cattle, fat cattle, fed cattle, or, in contrast to carcasses, live cattle). Packers kill the cattle and sell the meat in boxes made from the carcasses.
Feedlots that slaughter live cattle typically acquire feeder cattle calves weighing between 500 and 850 pounds (230 and 390 kilograms) and feed them to grow into cattle weighing between 850 and 1,400 pounds (390 and 640 kilograms). Backgrounding operations typically acquire 300–600 pound (140–270 kg) feeder cattle calves and feed them to grow into backgrounded cattle weighing 650–875 pound (295–397 kg).
Cattle that weigh between 650 and 700 pounds (290 and 320 kilograms) can be sold to grass-feeding operations, whereas cattle that weigh between 800 and 825 pounds (363 and 374 kilograms) can be sold to feedlot operators. Feeder cattle typically have a low feed-to-gain ratio and a high average gain (in weight). Buyers of feeder cattle will look for a variety of animal weight and grade ranges based on the circumstances.
To maximize profits, cattle producers and backgrounding operations weigh feed prices, live cattle prices, and other operating factors against feeder cattle prices, weights, fattening times, and death rates.
