This marketing unit focuses on the seasonal and cyclical patterns of livestock markets. Cash marketing, forward contracting, hedging in the futures markets, and the options markets are examined. Examples illustrate how each marketing tool may be useful in gaining a profit on livestock and cutting risk exposure. The unit is organized in the following eight sections: introduction to livestock marketing; seasonal and cyclical patterns; marketing tools (cash sales, forward contracts, futures and hedging, and options on futures contract); roles in marketing; summary; suggested references on livestock marketing; an appendix (contract specifications for hogs and cattle); and two exercises. A teacher's guide includes objectives, a teaching outline, suggested on- and off-farm learning activities, interest approaches, discussion guides, and answers to exercises. Thirty-seven transparency masters are included. (KC)