Home News ICA encourages comments to CME Group on changes to Worthing delivery point

ICA encourages comments to CME Group on changes to Worthing delivery point

by Ben Nuelle

Time is running out for you to comment on CME Group’s proposed changes to the Live Cattle Futures rules. In February, CME Group proposed an amendment to the Live Cattle Futures rules.

The amendment adds a seasonal $1.50/cwt discount on deliveries tendered to Worthing, SD during an October futures contract month. CEO of the Iowa Cattlemen’s Association Matt Deppe says Iowa cattle producers should share their views on the proposed changes.

Deppe says some producers have concerns about the changes.

“One thing we hear quite a bit is how is that allow me to be competitive when I am placing feeders in the pen compared to other parts of the country knowing if I have a traditional tendency to delivery cattle on the contract rather than play the board out and bring it to a close before I market them. I might have to start a $1.50 lower on the feeder calves which might put me out of competition with other cohorts across the river or down in the southern part of the United States, that’s a big example we hear quite bit,” Deppe says.

Deppe says overall when you look at adding the discount another challenge is youre looking out two years.

“You are being predictive in a time that is pretty volatile and there are some big market anomalies that do not happen every year. That is a challenge and we’re hearing that and picking that up from the input we’re getting from producers,” Deppe says.

Anyone may submit comments to CME Group on the proposed changes until April 4th.