Agriculture & livestock
What is the Live Cattle (LE) futures contract and what is its specific contract weight specification?
By Easy Money Scanner · Educational reference · Not investment advice
The short answer
The CME Live Cattle (LE) futures contract specifies 40,000 pounds of live steers meeting USDA quality grading, settled via physical delivery at approved stockyards or cash-equivalent procedures.
How it works
Contract pricing reflects feedlot cattle ready for slaughter, with delivery specifications requiring specific weight ranges, grade standards, and approved delivery points in major cattle-producing regions.
An example
A feedlot operator sells LE futures to hedge against falling cattle prices before cattle reach market weight and are sold for slaughter.
Risk & limitations
Delivery logistics and grading disputes can create basis risk; most traders exit positions before delivery to avoid physical settlement complications.
Examples are hypothetical, not trade recommendations. US contract and regulatory references do not automatically apply in Canada. Rules, margin requirements and broker policies can change; confirm them with the relevant authority and your broker.