CME: Livestock-Futures Prices May Be Disrupted by U.S. Shutdown
By Kelsey Gee
CHICAGO--CME Group Inc., the world's biggest futures exchange operator, said Tuesday that a prolonged U.S. government shutdown could interrupt or delay settlement prices for some dairy and livestock futures contracts.
The October 2013 contracts for live cattle, lean hog, feeder cattle futures and options, as well as milk, butter, whey, cheese and nonfat dry milk futures and options for September 2013 could potentially be impacted by the lack of pricing information from the U.S. Department of Agriculture. The USDA is furloughing staff who produce numerous daily and weekly reports on cash prices for agricultural products as a result of the partial government shutdown that began Tuesday.
CME said some of its dairy and livestock futures contracts are cash settled at their expiration, based on USDA price data. A prolonged government shutdown, it said in a letter Tuesday to customers, "may require the exchange to modify the current settlement procedures" for the affected contracts.
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(END) Dow Jones Newswires 10-01-131129ET Copyright (c) 2013 Dow Jones & Company, Inc.