ANSI 1124 Lecture Notes - Lecture 11: Delivery Point, Feeder, Futures Contract
Document Summary
Commodities tend to use grading systems to categorize product into uniform groups. Quality grade: indicates expected palatability or eating satisfaction: tenderness, juiciness, flavor. Yield grade: estimate of the %-age of boneless, closely trimmed retail cuts from the major wholesale cuts: based on. Load lot: truck size = generally 50,000 lbs of livestock: stockyard/sale barn. Commingling animals from more than one seller may be grouped together for marketing. A standardized agreement to buy or sell livestock at a date in the future is usually a verbal commitment and a hand-shake . Range or expected weight of individual animals . Delivery location at which to deliver the commodity . Usually has an agreed upon price between the parties . There might be a sliding scale for price and weight of commodity (animal) : future"s contract (cme specifications) Commodity (live cattle, lean hogs, feeder cattle) Quantity of the commodity (pounds of livestock as well as range or weight for individual animals) .
