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CME Group removed three live cattle delivery points, North Platte and Columbus in Nebraska and Pratt in Kansas, from the Live Cattle futures contract, effective after a February 1 advisory. The writer estimates this cuts weekly deliverable supply by about 10 percent and criticizes the move as contrary to 2017 contract reforms.
Lower deliverable capacity on the futures contract can reduce hedging efficiency and may add basis and volatility risk for cattle prices.
agri-pulse.comKenny GranerFeb 27, 2018Not enough comparable past events yet for a historical read.
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.
