Widely anticipated changes to the live cattle contract were announced by the Chicago Mercantile Exchange on Friday. The changes are specific to the October 2011 contract and beyond, according to the Texas Cattle Feeeders Association. A CME news release said the proposed changes are:
- Increasing the radius for determining the corresponding CME-approved processing plants for each live-graded delivery point from 150 to 200 miles.
- The maximum distance between the feedyard from which the cattle originate and any other eligible CME-approved processing plants will increase from 150 to 200 miles.
- The maximum par weight for individual animals in live-graded deliveries will increase from 1,475 lbs. to 1,500 lbs.
- Individual animals in live-graded deliveries weighing more than 1,500 lbs. will not be deliverable.
The October 2011 contract with the changes is scheduled to launch on Tuesday June 1, 2010. TCFA’s position on this issue was to request that any changes to the contract be deferred until after the October 2010 contract and delivery process had closed.
