# Is the feeder cattle futures contract a valid risk management tool?

> Analysts from Rabobank argue the feeder cattle futures contract remains viable for risk management despite volatility and thin open interest. They recommend efforts to increase trading volume to improve liquidity.

- Date: 2017-12-29 · published 2017-12-29T12:00:00.000Z
- Category: market · region US · magnitude low
- Page: https://feedsoft.ai/events/67602-is-the-feeder-cattle-futures-contract-a-valid-risk-management-tool
- Commodities: [Feeder Cattle](https://feedsoft.ai/c/FCATTLE.md)

## Why it matters

Improved feeder cattle hedging tools could help feeders manage price risk, but the contract's volatility and basis swings do not directly move feed demand.

## Read by commodity

- FCATTLE: neutral

## Sources

- beefmagazine.com: https://www.beefmagazine.com/cattle-market-outlook/is-the-feeder-cattle-futures-contract-a-valid-risk-management-tool-

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