A beginner’s guide to live cattle: Price, uses & market overview

Explore a thorough overview of the live cattle market, learn how it works in simple terms and get to grips with its significance as a popular global commodity.
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Written on Dec 21, 2023
Reading time 5 minutes

On this page, we explore everything you need to know about live cattle. Gain insights into live cattle market trends, pricing mechanisms, and the environmental impact of live cattle. 

Read on to learn more about this popular commodity and find links to beginner friendly guides explaining how you can get involved in live cattle. 

What is live cattle?

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Live cattle are an agricultural commodity that serves both an economic and nutritional purpose. Live cattle as a commodity are defined as mature bovines weighing more than 600 lbs and of a specific grade. They are destined for slaughter and subsequent processing into beef and other byproducts. 

Herds of cattle reach maturity at around 1 – 2 years old. Once a cattle farmer judges his herd to be ready, they are transported to to feedlots for up to 6 months for a final intensive feeding program. Once the cattle weigh between 1100 – 1400 lbs, they are sold and shipped to abattoirs and meat packing plants where they are eventually slaughtered. 

Live cattle market overview

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The live cattle market is a global industry valued at nearly $200 billion in 2025. The market is set for further expansion fueled by the rising appetite for beef and beef-based products in emerging markets. The United States, Brazil, India, and China are the biggest producers of live cattle and export globally. 

Live cattle are predominantly traded on over-the-counter markets (OTC), where farmers sell directly to consumers or distributors. However, live cattle futures contracts do exist on exchanges like the CME or ICE. One futures contract for live cattle on the CME settles at 40,000 pounds (18 metric tons) of live cattle. 

The price of live cattle has experienced its ups and downs in the past decade. The coronavirus pandemic hit the industry hard, although since then, the price of live cattle has reached new all-time highs in 2023, and looks set to continue into 2025. 

Are live cattle valuable? 

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Yes, live cattle is a valuable commodity and there are numerous reasons why investors are attracted to the market. We have highlighted some of these key fundamentals below, explaining what they are and why they matter.

  • Demand is high and continues to grow. Beef is a popular source of protein around the world. Consumption of beef is expected to increase in the coming years thanks to growing populations, especially in emerging markets. Investing in live cattle is one way to capitalise on beef’s popularity. 
  • Live cattle offer diversification. Many investors stick to stocks and bonds, or larger commodities like gold and oil. Buy, live cattle offers a different approach to diversification and can help you spread your money across various markets. People always need to eat, so beef tends to fare well when other markets are slow. 
  • You can hedge against inflation using live cattle. While there may be better commodities to use as a hedge against inflation, live cattle could be considered. The price of live cattle tends to move in line with rising inflation. This means by investing in the commodity, you’ll be better protected. 
  • Live cattle are a tangible asset. Unlike some financial assets, live cattle represent a tangible asset. Although it’s unlikely that you’ll ever see the cattle you’re investing in, this tangibility can offer a sense of security and connection to the underlying asset. 

How to invest in live cattle

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You can invest in live cattle by using a commodity trading platform. These platforms offer a range of commodities and are very easy to use. There are different platforms suitable for specific requirements. 

Some let you buy physical live cattle, others let you trade live cattle, and many are designed for investing in the grain. Visit our dedicated guide to discover how to invest in live cattle.

live cattle in your investment portfolio

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A diverse investment portfolio can help protect you during market uncertainty, and the inclusion of live cattle can add value while allowing you to spread your money across various markets. 

Live cattle often move independently to traditional investments like stocks and bonds. You can include live cattle in your portfolio as a hedge against potential losses. During times of economic uncertainty, investors view commodity grains such as live cattle as attractive options. 

Live cattle vs other commodities

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Live cattle are an agricultural commodity. Each commodity is unique in its own way and offers different features for investors and traders. You can learn more about specific commodities using our dedicated guides below. 

  • Wheat. Wheat is a grain that is grown around the world and is used for various foods. 
  • Corn. Corn is one of the most versatile commodities with many uses, including livestock feed, biofuel, oil, and food. 
  • Rice. Rice is the most popular grain commodity and a staple for half the world’s population 
  • Soybean. Soybean is a major global commodity used for livestock feed and cooking oil.

Sources & references

Prash Raval

Prash Raval

Financial Writer

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Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while running an educational service helping novice traders learn the markets. He has a keen interest in micro and small cap stocks....