The CME Group last week published a special executive report announcing the results of the annual reset of the daily price limits in the live and feeder cattle futures contracts. The new limits will take effect Monday, June 2. For live cattle, the new initial limit will be $7.25/cwt., up 75¢ from the current initial limit of $6.50/cwt. The new expanded limit for live cattle will be $10.75/cwt. For feeder cattle, the new initial limit of $9.25/cwt. is $1.00 higher than the current initial limit of $8.25/cwt. The new expanded limit for feeder cattle will be $13.75/cwt.
This reset was done in accordance with the adjusted formula, which came about as a result of NCBA’s request to reduce limits following the 2024 reset. Previously, the initial limit for live cattle was calculated by multiplying the 45-day average settlement price of the June contract by 4.25%. Under the new formula, it is multiplied by 3.5%. Feeder cattle initial limits still are 125% of the live cattle limit and expanded limits are 150% of their respective initial limit.
NCBA remains in active discussions with officials at CME on ways to make the formula work better for commercial shorts in the market.