Livestock futures are a type of financial contract that enables investors to speculate on the future price of livestock commodities, such as cattle, hogs, and pork bellies. These contracts are traded on commodity futures exchanges and enable investors to lock in a price for the delivery of livestock at a future date.
Livestock futures are used by farmers, meat packers, processors and traders to hedge against the risks of price volatility in the livestock market. By locking in the price of a future delivery, these market participants can better manage their risks and plan their operations with greater certainty.