How to trade & invest in live cattle for beginners 2025

Trade your favourite markets with our top-rated broker, eToro.

eToro 4.6/5

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

Visit site

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.

In this guide, we explore the foundational aspects of live cattle investments, from the factors that drive live cattle prices to the various investment vehicles available, such as spot markets, futures contracts, stocks of live cattle companies, and exchange-traded funds (ETFs).

Can I invest in live cattle?

Yes, investing in live cattle is straightforward and available to anyone using an online trading platform. Investing in live cattle and trading live cattle represent different approaches with varying time horizons. 

Live cattle investing involves a long-term perspective with the main aim of growth and diversification. live cattle trading, on the other hand, focuses on short-term price movements for quick gains. 

You can invest or trade live cattle through many different avenues, including physical ownership, live cattle exchange traded funds, or CFDs. To decide on the best approach, you will need to consider your goals and time horizon before aligning your strategy with your specific objectives. 

Where can I trade live cattle online?

Before you invest in live cattle you’ll need to register with an online broker. Our experts have selected some of the top live cattle trading platforms. Check out any of the links below to get started in just a few minutes.

4.6

eToro

Min. Deposit $100

Fees 1%

No. assets 3600+

Demo account Yes

Visit site

eToro review

eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 51% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

4.5

Plus500

Min. Deposit $100

Fees From 2%

No. assets 2800+

Demo account Yes

Visit site

Plus500 review

This information is NOT relevant to EU residents who are to be serviced by EU subsidiaries of the Plus500 Group, such as Plus500CY Ltd, authorized by CySEC (Reg. 250/14). Different regulatory requirements apply in Europe, such as leverage limitations and bonus restrictions.

How to trade & invest in live cattle

Min. Deposit n/a

Fees -

No. assets n/a

Demo account -

Visit site

What is live cattle investing?

Live cattle investing gives investors a unique avenue for portfolio diversification and capital growth. As an investment, live cattle can serve multiple purposes. 

Many investors use live cattle as a store of value, as a way to hedge against inflation, or for diversification. live cattle’s historically low correlation with other assets like stocks and bonds makes it a top choice for investors looking to reduce overall risk. 

Although live cattle prices can fluctuate in the short term, investors generally focus on the potential for steady and long term growth. This long term focus is what differentiates live cattle investors from traders. When trading live cattle, you are more interested in short term price fluctuations than long term performance. Before taking the first step, it’s important to learn how to invest in live cattle and understand market dynamics. 

What is live cattle trading?

Live cattle trading can take many forms. Speculators, or retail traders capitalise on short term price fluctuations to earn profits. Producers or other entities involved in the live cattle industry can use trading strategies to hedge against future price changes and ensure safety for their business operations. 

Long term investors look to hold positions for extended periods to profit from live cattles future growth. Futures contracts, spot markets, options, and various derivative instruments are standard methods for trading live cattle. In the following sections, we’ve explained the different ways you can trade live cattle so you can find the most suitable method. 

Ways to invest in live cattle

There are several options available when it comes to investing in live cattle and the one you should pick depends on your budget, experience, and the timeframe for seeing returns. Here’s a look at the various ways you can invest in live cattle.

• Invest in live cattle stocks. Perhaps the simplest way of gaining exposure to live cattle is investing in public companies that are involved in the live cattle industry. The share price of these companies will correlate somewhat with the price of live cattle. You will mainly be looking at companies such as manufacturers, producers, and sellers. 
• Invest in live cattle ETFs. Exchange traded funds (ETFs) are funds that trade on the stock exchange like any ordinary stock; however, they contain a selection of different stocks, providing a diversified blend for investors. You can also invest in live cattle commodity ETFs, which are funds that have their value pegged to physical live cattle. Our guide on the best agriculture ETFs has a selection of funds to invest in. 
• Invest in live cattle funds. Mutual funds are created when capital from many different investors is pooled together and a fund manager takes control, using their expertise to decide what live cattle assets to invest in and when to sell them. This can be a great way of investing in live cattle without the strain on your own knowledge and experience.
• Trade live cattle futures. Futures contracts are the most common way to speculate on short term price changes. They are an agreement to make a trade at a future date for a pre-agreed price. live cattle futures contracts require a detailed understanding of what impacts short term prices, and are most suited to someone with experience in the market.
• Trade live cattle CFDs. Contracts for Difference (CFDs) are a popular way to speculate on live cattle price movements without having to own the physical asset itself. This makes them ideal for commodity trading, where it’s not practical to own and store large quantities of live cattle. With CFDs, you can profit from both rising and falling prices. CFDs also offer leverage, which can amplify your exposure to live cattle markets. 
• Trade live cattle options. Options let you buy or sell live cattle contracts at a predetermined price on or before a specific future date. live cattle options trading requires some expertise but allows traders to capitalise on price changes and manage risk, which makes it popular with people familiar with the live cattle market.

How to invest in live cattle – a step-by-step guide

Investing in live cattle is a simple process. Before you begin, you’ll need to register with an online broker to access the live cattle market. Follow the steps below to learn how to invest in live cattle. 

What to consider before making a live cattle investment

When investing in live cattle, it’s important to approach with a well thought out strategy. Considering a range of factors before investing can save you time and money in the long run. Use the helpful tips below to plan your live cattle trading or investing strategy. 

What are your investment goals?

Before you begin, you should clearly define your investment objectives. Are you seeking quick gains, long term wealth appreciation, or steady income? Knowing your goals before you start can help guide you in your strategy and also which live cattle derivative to use. 

Does live cattle suit your risk tolerance?

Commodities like live cattle often experience large price fluctuations due to supply and demand dynamics, global events, and economic changes. Make sure you’re comfortable with the potential for market fluctuations. If you’re a short term trader, then ensure you’ve checked the historical price chart for live cattle to determine if it’s volatile enough for day trading. 

Will investing in live cattle add diversification to your portfolio?

For long term investors, diversification is one of the core principles to follow. When you invest in live cattle and add it to your portfolio, make sure it complements your existing investments. For example, if you already own several live cattle stocks, you may be better off choosing another commodity. 

Take the time to study the live cattle market dynamics. 

Like many commodities, live cattle have unique characteristics and supply and demand fundamentals. To trade live cattle, studying the broader live cattle market, especially historical price trends is essential. Before you invest in live cattle, you will need to understand the factors that influence its value. 

Choose the right investment vehicle.

We’ve already discussed the options available to you to buy live cattle. Each has its own advantages, so you should select the one most suited to your investment goals. For example, trading live cattle is best done via futures, options, CFDs, and spot. If you invest in live cattle, stocks or ETFs are the way to go. 

How does the live cattle market work?

The live cattle market functions similarly to other commodity markets. However, not all commodities move in the same way and live cattle has a number of unique features that make it independent. Below are some of the key factors at play.

• Breading. The whole industry starts with breeding cows. Cattle farms and ranches raise calves. These calves are weaned for 12 – 24 months before being allowed to mature to over 600 pounds. 
• Feedlots. Once cattle reach at least 600 pounds in weight they are transported to feedlot operations. Here they feed on grain for up to half a year. Once they have reached a minimum weight of 1,400 pounds, they are moved on. 
• Auctions. This is the stage where feedlot operators sell their heard to brokers and meat processors. Live cattle auctions take place all over the world. 
• Meat processing. After being bought at auction, cattle are harvested for beef cuts at packing plants. They are chilled, stored, and distributed to retail locations before being sold to consumers. Hides are also transformed into leather. 
• Supply and demand. Like all markets, the biggest driver of live cattle prices is the principle of supply and demand. Many factors impact the supply and demand of live cattle, including production levels, consumption, and even geopolitical events. 
• Exchanges. Live cattle are traded on several exchanges where buyers and sellers transact. The price of live cattle may be slightly different between exchanges. The main live cattle exchange is the CME.
• Hedging. The live cattle market is often used for hedging purposes. Producers of live cattle may use futures contracts to protect against future price fluctuations, resulting in stability for their business practices. 
• Speculators and investors. Retail investors and traders can impact live cattle prices. This is especially the case for short-term movements, where speculators provide liquidity to the market and impact near-term price dynamics. 

Is live cattle a good investment?

This really depends on the key supply-demand drivers, the status of the global economy and your own needs and desires as an investor. live cattle has many benefits that make it a good choice for investors. Its main advantage is its role in diversification. It also has a low correlation with traditional assets such as stocks and bonds, which means if you include live cattle in your portfolio, you’ll spread risk and add stability. 

You can also use live cattle as a hedge against inflation. When inflation rises, the value of live cattle historically appreciates. The real world use of live cattle also creates constant demand. However, it’s important to remember that live cattle investing is not totally risk-free. 

A wide range of factors influences its price, so you’ll need to have a solid understanding of market dynamics before investing. 

What are the risks of trading live cattle?

Trading live cattle has the potential for significant rewards but also carries risks you need to be aware of. These risks are the same across the overall commodity market, but for live cattle, several more specific ones apply. Below, we’ve explained the main risks of live cattle investing.

• Volatility. The live cattle market is known for its price volatility. Compared to other markets, the price of live cattle can widely fluctuate daily. It can be costly if you’re unprepared for the volatile nature of the live cattle market. 
• Macroeconomic factors. live cattle prices are affected by several macroeconomic factors, such as industrial demand, inflation, interest rates, dollar strength, and geopolitics. Before trading live cattle, you should have a good understanding of these. 
• Live cattle have no yield. Unlike with other investments such as bonds or dividend stocks, live cattle does not provide any income yield. So, any returns you make rely entirely on its value increasing over time. You may encounter long periods of flat prices that can reduce your profits. 
• Low liquidity. In general, commodity markets have less liquidity than more mainstream assets like stocks or currencies. Low liquidity can be problematic, especially if you’re a trader, as you may have wide bid-ask spreads, which could impact the ability to enter or exit positions. 
• Regulatory risks. Government policies can play a role in the way live cattle prices move. Export restrictions or changes in tax regulations could introduce unforeseen risks. 

Bottom line

Live cattle investing offers the opportunity for diversification and portfolio growth. Live cattle has potential benefits as a store of value and hedge against inflation, but it’s essential to weigh the risks such as price volatility and market uncertainty before investing. 

One of the key benefits of the live cattle industry is the various ways you can get involved. There is an investment vehicle for everyone, from live cattle stocks and ETFs for long term investors to live cattle futures and CFDs for short term traders. A trusted and regulated trading platform is a must if you want to navigate the live cattle industry successfully. 

FAQs