Andreas Neier

COT Trader

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Live Cattle (LE) – Knowledge

Contract specs • Seasonality • Cattle cycle • COT • Reports • Production • Trading notes

1️⃣ Contract Specifications

Exchange / Symbol CME / LE (Live Cattle)
Contract Size 40,000 lb live steers (≈ 18,144 kg)
Tick Size $0.00025/lb = $10 per contract
Point Value $0.01/lb = $400 per contract
Contract Months Feb, Apr, Jun, Aug, Oct, Dec
Settlement Physical delivery (designated delivery points/grades)
Margin (Indicative) ~$2,000–$3,000 initial (volatility & broker dependent)
Trading Hours (U.S. / EU) CME Globex (electronic): ~08:30 – 13:05 CT
→ ~15:30 – 20:05 CET (Winter) • ~15:30 – 20:05 CEST (Sommer)
Last Trading Day Typically the last business day of the contract month (see CME rulebook)
Commission Example ~$2.50–$3.50 / side (Futures) or CFD equivalent

2️⃣ Seasonality Overview

Live Cattle reflects beef demand cycles (retail, grilling season) and the cattle production cycle. Historisch festigt der Markt oft in Q1–Frühjahr und zeigt Schwäche in Spätsommer–Herbst.

  • 📈 Bullish window: Feb – May (Frühlings-/Grilling-Nachfrage)
  • 📉 Bearish window: Aug – Oct (höhere Angebotsphasen)
  • Neutral/variabel: Nov – Jan

Seasonal reference: 10–15y averages on CME Live Cattle continuous.

3️⃣ Cattle Cycle – Key Phases

Phase Timing (typisch, US) Market Notes
Calving & Cow-Calf Jan – Mar (varies by region) Herd growth/shrink; weather risk
Pasture Turn-out Apr – May Grass conditions → weight gains
Feedlot Placements Sommer/Herbst Peaks Impacts future marketings
Marketings / Slaughter Rollierend Beef production flows → price

Hinweis: Feeder Cattle (GF) Preise & Corn-Kosten steuern Placements/Feeddauer.

4️⃣ COT Insights

Commercials (Packers/Processors) hedgen Forward-Einkäufe/Verkäufe, während Managed Money eher trendfolgt. Nützlich sind COT-Extreme in Kombination mit Preis/VWAP-Struktur und Spreads vs. Feeder Cattle (GF).

  • COT Index > 85 → spekulative Long-Sättigung / Korrekturgefahr
  • COT Index < 15 → potenzieller Washout / Reversal-Zone
  • Commercial Shorts steigen oft bei Preisstärke (Absicherungen)

Reference: CFTC “Live Cattle – CME”.

5️⃣ Key Reports & Data Releases

Report Agency Frequency / Timing
Cattle on Feed (placements, marketings, on-feed) USDA Monthly (late month)
Livestock, Dairy & Poultry Outlook USDA/ERS Monthly
Cold Storage (beef stocks) USDA Monthly
Weekly Slaughter/Cutout (boxed beef) USDA/AMS Weekly
Export Sales (beef) USDA Weekly (Thu)
COT Report CFTC Weekly, Fri 21:30 CET
Macro (FOMC, CPI, NFP) Fed/BLS Monthly

6️⃣ Global Production & Trade

Die globale Rindfleisch-Produktion wird von USA, Brasilien, China, EU und Indien geprägt; Exportflüsse dominieren Brasilien, USA, Australien. Nachfrageimpulse kommen aus USA, China, Japan, Südkorea und dem Mittleren Osten.

  • Top producers: USA, Brazil, China, EU, India, Argentina, Australia
  • Export leaders: Brazil, USA, Australia, New Zealand
  • Key importers: China, Japan, South Korea, EU, Middle East

7️⃣ Production Costs & Market Drivers

Driver Impact Notes
Feed Costs (Corn/Meal) ↑ feed → ↑ finishing cost → supply shifts Watch ZC/ZM
Pasture/Weather (drought) Herd liquidation/build cycles Forage & water availability
Packers’ Margins / Cutout Processing economics → demand for cattle Boxed beef/kill rates
FX & Export Demand Competitiveness & global flows USD vs competitors

8️⃣ Correlations & Proxies

  • Feeder Cattle (GF) & Corn (ZC) – Kosten/Platzierungslogik
  • Retail demand seasonality (grilling)
  • ETF/CFD proxies: Live Cattle CFDs; livestock baskets

9️⃣ Trading Notes / My Take

LE ist sauber handelbar, aber news- und berichtsgetrieben. Ich synchronisiere Setups mit Cattle on Feed, Cutout/Slaughter-Trends, COT-Extremen und VWAP-Clustern. Liquidität am besten zur US-Day-Session (~15:30–20:05 CET/CEST).

  • Seasonal long bias: Feb–May; Schwäche: Aug–Oct
  • Feed-Kosten (ZC) & Feeder-Spreads beachten
  • Positionsgröße konservativ um Monatsberichte
Disclaimer: Educational content only. This information does not constitute investment advice. Always verify contract details and market hours with your broker.
Arcadiastraße 13, 40472 Düsseldorf +49 (0) 171 8108310 This email address is being protected from spambots. You need JavaScript enabled to view it.
© Andreas Neier COT-Trader 2025
  • Home
  • About Me
  • Knowledge
    • CoT Data
    • Seasonality
    • Stock Holidays
    • Revised CoT Data Schedule
    • Rare Earth Metals
  • Analysis
  • Strategies
  • Tools
  • Broker
  • Contact
  • Datenschutzerklaerung
  • Impress