The Chicago Mercantile Exchange (CME) Group announced last week via special executive report a reduction in the daily price limits for live and feeder cattle contracts. The changes will take effect October 25.
For live cattle, the new initial limit will be $6.50/cwt., down $1.00 from the current initial limit of $7.50/cwt. The new expanded limit for live cattle will be $9.75/cwt. For feeder cattle, the new initial limit of $8.25/cwt. is $1.00 lower than the current initial limit of $9.25/cwt. The new expanded limit for feeder cattle will be $12.25/cwt.
This change is a direct result of NCBA’s engagement with the CME Group, where they expressed concerns with the new limits derived under the existing formula earlier this year. NCBA leadership and staff are working to renegotiate the underlying formula in its entirety.