The Chicago Mercantile Exchange has made some changes to it's price limit system for Feeder Cattle and Live Cattle.
The daily price limit for Feeder Cattle has been raised from 3 dollars per hundredweight to 4.50.
The daily price limit for Live Cattle futures remains unchanged at 3 dollars per hundredweight.
However, in both cases, the daily limit will be able to expand by 150 per cent on any business day in the event that one of the first two contract months settles at limit on the previous trading day.
In the case of Feeder Cattle, that could boost the daily price limit to 6.75.
For Live Cattle, it would go to 4.50.
CME Feeder Cattle futures were locked limit for five straight days last week as a result of various factors.
Exchange officials say the daily limit changes for cattle were needed to ensure continued price discovery and risk transfer for CME Group customers.
