CME Group Inc will reduce the standard freight rate for the live cattle futures contract effective Feb. 2, the exchange said in a letter to its customers on Tuesday.

The new freight rate will be $4.10 per mile per contract, a decrease of 30 cents from the 2014 rate of $4.40 per mile per contract as determined by the exchange annually.

A standard freight rate is used in carcass graded deliveries of live cattle to compensate the seller when the buyer requests delivery at a packing plant that is further from the feedyard than the delivery point stockyards.