CME Group to revamp cattle delivery rules before meat labeling vote

Fri Dec 4, 2015 12:15pm EST
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CHICAGO Dec 4 (Reuters) - CME Group Inc plans changes to its rules for live cattle futures, requiring that all cattle delivered against the contract must be born and raised solely in the United States, the exchange said in a statement on Friday.

The new requirement, effective Dec. 18, covers all currently listed trading months through April 2017.

CME said the amendments are intended to clarify existing live cattle futures delivery regulations in the event of a U.S. Senate and U.S. Department of Agriculture repeal of the Country of Origin Labeling (COOL) law for beef and pork.

The Senate is expected to vote on the matter as early as Monday after the U.S. House of Representatives had already voted to repeal COOL legislation.

Canada and Mexico are prepared to impose trade sanctions against the United States after the World Trade Organization recently ruled for the fourth time that the COOL law violates trade agreements.

"The purpose of these rule changes is to maintain the status quo in an uncertain policy environment, since the current U.S. origin requirement is dependent on COOL being in place," the exchange said.

CME said it will not list additional live cattle futures and options contract months until it is determined, through further discussions with the industry, whether cattle of non-U.S. origin should be allowed for delivery against live cattle futures contracts after the April 2017 trading month. (Reporting By Theopolis Waters; Editing by James Dalgleish)