Chicago Mercantile Exchange implements new amendment to feeder cattle contracts

The Chicago Mercantile Exchange (CME) recently implemented a new amendment to its feeder cattle contracts. Beginning in the May 2019 contract, starting today June 11, feeder cattle identified as being “fancy,” “thin,” “fleshy,” “gaunt,” or “full” in the USDA Agricultural Marketing Service reports will be included in the calculation of the Feeder Cattle Index. The Index is calculated using certain criteria. Specifically, steers with a frame score of medium and large #1 and medium and large #1-2 weighing between 700-899 lbs. are considered. Previously, “commented” cattle—those listed with descriptions—were excluded from the calculation. Also excluded were cattle noted to be dairy, Brahman, or exotic breeds. Under the new amendment, commented cattle will be accepted. The breed and size restrictions still apply. — WLJ