Live Cattle — Commitment of Traders

Live Cattle futures trade on the CME in 40,000-pound contracts and represent finished beef cattle ready for slaughter. COT positioning in live cattle is driven by the cattle supply cycle (which is multi-year in nature), beef demand trends, and packer margins. The cattle supply cycle — where herd rebuilding follows years of herd liquidation — means commercial hedger positioning can be persistently one-directional for extended periods. Speculative funds in live cattle typically trade shorter-term momentum, seasonal patterns (grilling season, holiday demand), and the fed cattle cash market relationship. The COT Index for live cattle is useful for identifying when seasonal or momentum-driven spec longs are crowded relative to the underlying supply fundamentals. Commercial hedgers include JBS, Tyson, and other packers hedging forward procurement costs, as well as feedlot operators locking in breakeven prices. Weekly changes in the spec net position for live cattle track closely with the weekly cash cattle trade, USDA boxed beef cutout values, and cattle-on-feed reports.