# Feeder cattle prices versus fed cattle futures

> Analyst Nevil Speer argues that feeder cattle are priced off deferred live cattle futures rather than current cash prices. The CME feeder index has averaged about $30 above the deferred live cattle contract over the past four years. He frames this spread as a practical starting point for pricing feeders.

- Date: 2020-02-01 · published 2020-02-01T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/55217-feeder-cattle-prices-versus-fed-cattle-futures
- Commodities: [Live Cattle](https://feedsoft.ai/c/LCATTLE.md), [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

The fixed spread gives buyers a method for projecting feeder prices from the deferred fed contract, which affects feeder procurement costs.

## Read by commodity

- FCATTLE: neutral
- LCATTLE: neutral

## Sources

- beefmagazine.com: https://www.beefmagazine.com/feedlots/feeder-cattle-prices-versus-fed-cattle-futures

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.