Live Cattle definition
Examples of Live Cattle in a sentence
Figure 6.1 shows that the hedge ratios have been very variable recently, especially after Hedge Ratio Figure 6.1 BGARCH with ECM time varying hedge ratios for hedging 5 Market Average Live price for steers with Live Cattle Futures Contract 2013.
Corn X X X X X Wheat X X X X X Soybeans X X X X X X X Feeder Cattle X X X X X X X Live Cattle X X X X X X X X Lean Hogs X X X X X X X X Producers select a contract month based on when they want to deliver the physical commodity.
If none of the first four listed contract months for Live Cattle and Feeder Cattle futures contracts subject to price limits settle at a price change equal to or greater than their respective initial price limits on the next business day, daily price limits for all contract months shall revert back to the initial price limit on the following business day.
If an expiring Live Cattle futures contract settles at its price limit on the day prior to the last trading day, the price limit for an expiring Live Cattle futures contract on the last trading day shall be two times the expanded price limit.
Prior to June 2006, the closing prices of futures contracts on Feeder Cattle (FC), Cotton #2 (CT), Coffee (KC), Cocoa (CC), Live Cattle (LC), Lean Hogs (LH), Corn (C), Wheat (W), Soybeans (S), Sugar #11 (SB) and Kansas Wheat (KW) were obtained from publicly available information from Logical Information Machines (▇▇▇▇://▇▇▇.▇▇▇.▇▇▇), Bloomberg, and Reuters.
Should any Live Cattle futures contract month within the first four listed contract months subject to price limits settle at limit, or should any Feeder Cattle futures contract month within the first four listed contract months subject to price limits settle at its limit, the daily price limits for all contract months shall increase on the next business day by 50 percent, rounded down to the nearest $0.0025 per pound.
Daily price limits for Live Cattle futures are reset annually on the first trading day in June based on the following: Daily settlement prices are collected for the nearest June contract over 45 consecutive trading days before and including the last trading day in April (Last Trade Date of the nearest April contract).
The resulting number rounded down to the nearest $0.0025 per pound, or $0.040 per pound, whichever is higher, will be the new initial price limits for Live Cattle futures and will become effective on the first trading day in June and will remain in effect through the last trading day in May of the following year.
Table 6.8 Optimal Hedge Ratios Spot Price Futures Price Optimal Hedge Ratio 5 Market Average Live Steers 5 Market Average Dressed Steers BBCV index Live Cattle BBCV Live Cattle BBCV Live Cattle BBCV (Adjusted R-squared) 0.752 (0.622) 0.458 (0.413) 0.677 (0.575) 0.360 (0.378) 0.382 (0.414) 0.667 (0.667) Note: ECM was used to estimate all optimal hedge ratios and adjusted r-squares.
There shall be no trading in Live Cattle futures at a price more than the price limit above or below the previous day’s settlement price.