Is Investing in Livestock a Good Decision?

In a world where most of the leading companies are tech related and almost everything is electronic, you don’t hear a lot about the cattle industry anymore.  Yet people still eat beef at the same rate.  Fast food burgers are as popular as ever.  So is investing in cattle a good idea in this day and age?

There is no doubt that cattle are among the most used and consumed products in the world, since virtually every part of a cow has some use, whether it is in food, clothing, or other goods. 

The cattle market can be a very high reward investing market, but it also carries some risks.  Outbreaks of different diseases, allegations of animal abuse, and other issues can certainly have a negative impact on the affected company and the industry, which trickles down to those investing in the company’s cattle.

Investing in cattle is usually done through futures purchasing.  Live cattle are sold on the Chicago Mercantile Exchange in quantities for 40,000 or 50,000 pounds.  Live cattle options allow investors to make a purchase that will allow them to purchase the cows at that price at a later date.  They can choose to do this or to sell the cattle at a future date for a contracted price.

Trading cattle futures can certainly be a viable means of investing, and it can be profitable.  As with any means of investing, there are certainly risks involved, but in many cases, it can be a very high reward way to invest.