Micheal Clements, NAFB News Service
CME Group Thursday announced planned changes to live and feeder cattle futures price limits. Pending approval by the Commodity Futures Trading Commission, CME Group will implement the changes Monday, October 5, 2020. The changes amend daily price limits to adjust the current, initial daily price limit for Live Cattle futures from $0.03 to $0.04 per pound and for Feeder Cattle futures from $0.045 to $0.05 per pound. CME Group will maintain the existing practice of establishing expanded price limit levels at 150 percent of initial price limit levels, which will result in an increase in the expanded price limit for Live Cattle from $0.045 to $0.06 per pound and an increase in the expanded price limit for Feeder Cattle from $0.0675 to $0.075 per pound. CME Group also seeks to replace the current fixed daily price limit regimes, consisting of a fixed price limit and expansion mechanism, with a variable price limit regime that will be price-based and reset annually.