The CME Group Inc, the world's largest livestock futures exchange, will adjust carcass grading specifications for the live cattle futures contract settlement effective on Aug. 3, the exchange said on Monday.
Amendments will be effective beginning with the August 2015 contract month and beyond.
The adjustment will allow CME's rules to be consistent with Official United States Standards for Grades of Carcass Beef issued by the Secretary of Agriculture, the CME said.
Pending review by the Chicago Futures Trading Commission, the changes include the prime, standard, yield grade 1, yield grade 2, yield grade 4, yield grade 5, 400-500 lbs., 500-550 lbs, 550-600 lbs., 900-1000 lbs., 1000-1050 lbs. and over 1050 lbs.
Additions to current specifications are for carcasses with hardbone or dark cutter characteristics. They shall be deliverable at per pound adjustments in accordance with USDA grading procedures and equal to the quality grade factors described in Section 10103.A, as per the exchange regulations.
For further information regarding the new rule changes: bit.ly/1ecBsPg