Fat cattle futures contracts for August 2024 are hovering

Fat cattle futures contracts for August 2024 are hovering at $183.65, bolstered by heavy packer purchases ahead of predicted holiday beef demand. Daily volume exceeded 45,000 contracts, indicating higher institutional interest. RSI at 58 signals moderate bullish momentum. At $2.32275 per pound, the value of one live cattle futures contract containing 40,000 pounds is $92,910. The CME’s current original margin requirement is $3,410 per contract. A market participant can control one contract of live cattle futures from the long or short side with a 3.67% down payment. If equity declines below $3,100 per contract, the exchange requires maintenance margin payments. Self-Study Guide to Hedging with Livestock Futures & Options Analysts forecast fat cattle futures may test $185.20 if export demand to Japan continues rising. The latest data shows weekly slaughter rates at 642,000 head, slightly above the five-year average, pointing to solid downstream beef supply chains.