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The CME will expand initial margins and daily price limits on live and feeder cattle futures effective October 5, pending CFTC approval. Live cattle daily limits rise to $0.040 a pound from $0.030, and feeder cattle limits rise to $0.050 from $0.045.
Changes to margin and price limit rules affect trading costs and volatility for hedgers but do not directly change cattle supply or demand.
ziacommodities.comLester AldrichAug 26, 2020After 102 past neutral policy events, Live Cattle moved a median +0.6% over 5 sessions (63% higher; middle half -0.7% to +1.2%), and +1.3% over 20.
After 28 past neutral policy events, Feeder Cattle moved a median +0.2% over 5 sessions (61% higher; middle half -0.6% to +0.8%), and +0.8% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.
