– Consider this investment as cattle farming for dummies. Two commodities futures contracts exist for the cattle trader and investor: the live cattle and the feeder cattle contracts, which both trade on the Chicago Mercantile Exchange (CME). please help me. We will be posting this on our website too. Top breed beef produces A calve after +/_ 280 days gestation period and wheened calve sells for 50% of a heifer……. Advertise jQuery('img[class*="wp-image-"]').bind('click', function () { Before buying cattle decide what breed, age, size, class and type of cattle you are actually looking for. If you are willing to purchase milk producing animal, then the udder of the animal should be healthy. Disclaimer Ace Magashule: ‘Will cooperate with law enforcement agencies’, Total’s second major gas find puts SA on the global energy map. And these two ways are by auction and directly from private farm or livestock market. This platform offers interested investors an easy and straightforward way to get into the cow business without getting their hands dirty! else { Hi, While a loan and a line of credit or credit lines, allows an individual or a business to borrow money to meet certain expenses,... Are you thinking about becoming your own boss? A good and healthy cattle should be alert, curious and contented. The udder of the cow should not show too much, sideways movement when she walks. Find out how you can invest in commodities. Rabbit 1. jQuery('html, body').animate({ I do not own cows personally yet I have a lay-by (lay-away plan) that I contribute monthly towards a cow. The most important of all is enabling people to save in an asset type they understand so that they can be able to provide for their families education, weddings, and funerals. With demand for livestock meat expected to continue increasing alongside the international population, livestock can provide excellent investment opportunities . Second, always consider the seller’s reputation before making a purchase. Here are the specs of this futures contract: Underlying commodity: Feeder cattle (650–849 pound steers, medium-large #1 and medium-large #1–2), Price fluctuation: $0.00025 per pound ($12.50 per contract), Trading months: January, March, April, May, August, September, October, and November. Social grants: What's fair, right … and possible? “Many people live in urban areas and they have interests in participating in farming but they cannot physically be there and this offers them a platform to do that,” said Wandile Sihlobo, economist with South African agribusiness association Agbiz. Once home, settle the animals into their new surrounds gradually. if (textParagraph) { Zoe Stabler Updated Apr 27, 2020. As enticing as an online purchase might be, you need to examine the cattle in person before signing on the dotted line. Cattle have long been considered a measure of wealth across Africa – but it is not just farmers cashing in. USDA auction summaries are a good tool for figuring how much you will spend on cattle. The plan should include the type of cattle you want to purchase and all the associated costs. Write CSS OR LESS and hit save. As with any investment, however, risks exist. This market isn’t as volatile as some other futures markets because parties can hedge their various market positions to cut down on uncertainty. Then that cows goes on giving you a cow every 18 months and it looks like a pyramid. The feeder cattle market has a contract ticker symbol of FC and an electronic ticker of GF. A pregnant cow costs R18 730 and takes 12 months before the newborn calf can be sold for a return, while investing in a calf costs R11 529 and takes six months for it to grow enough to be sold. Investing in livestock means buying cattle and other farm animals to earn a return on one’s money after the animals are sold. When investing in live cattle, you need to look at it as any other serious investment, meaning you must start with a business plan. } The CME live cattle futures contract, launched in 1964, heralded a new era for the exchanges. The contract size for live cattle is 40,000 pounds, while the contract size for feeder cattle is 50,000 pounds. Savvy Cattle Ranch Investing posted: Thursday, October 01, 2015 As featured in Land Investor Magazine Vol. Two futures contracts exist for the cattle trader and investor: the live cattle and the feeder cattle contracts, both of which trade on the Chicago Mercantile Exchange (CME).