New further-month live cattle futures, options to resume

Chicago | Reuters — CME Group plans to resume its listing schedule for live cattle futures and options contracts, effective Feb. 18, the exchange said in a statement Wednesday.

CME said it will post the June 2017 live cattle futures and options contract that was originally scheduled to be listed on Jan. 4.

The exchange said it will not amend CME Rule 10101, which does not allow delivery of non-U.S. origin cattle, and will continue to require that all cattle delivered against the contract must be born and raised only in the U.S.

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CME Group temporarily delayed listing new contracts in early December 2015 to evaluate possible delivery changes of non-U.S. origin cattle in anticipation of a repeal of beef, as a covered commodity, subject to mandatory country-of-origin labeling (COOL) requirements.

Later that month, the U.S. Congress passed a broad 2016 spending package that included the repeal of COOL in order to avoid more than US$1 billion in trade retaliation by Mexico and Canada.

“Upon feedback from market participants, and the lack of publicly available data on discounts or premiums based on the country of origin of slaughter cattle, CME has determined not to amend Rule 10101 regarding country-of-origin delivery at this time,” the exchange said.

Reporting for Reuters by Theopolis Waters in Chicago.

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