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How many pounds do feeder cattle contracts typically cover for beef steers?
25,000
50,000
75,000
100,000
The correct answer is: 50,000
Feeder cattle contracts are generally standardized to cover a specific weight, and in the case of beef steers, this standard is typically set at 50,000 pounds. This weight represents the amount of cattle that can be effectively managed and traded in one contract, making it a practical choice for both producers and buyers. The designation of 50,000 pounds allows for a manageable market size, aligns with common herd sizes, and facilitates easier negotiation and pricing within the feeder cattle market. Understanding this standard is crucial for participants in the cattle industry as it informs trading practices and contract management strategies. The other weights mentioned, such as 25,000, 75,000, and 100,000 pounds, do not reflect the typical market practices and standards for feeder cattle contracts, thus highlighting the importance of recognizing industry benchmarks.