Effective February 1, 2014, the Chicago Mercantile Exchange Inc., (CME or Exchange) will amend the standard freight rate for the Live Cattle Futures contract (rulebook chapter 101; commodity code: LC). 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. Pursuant to CME Rule 10103.C.8 (Cost of Grading, Weight, and Transportation), this rate shall be determined annually by the Exchange. Effective February 1, 2014, this rate will be $4.40 per mile per contract, an increase of $0.30 from the 2013 rate of $4.10 per mile per contract.
The Commodity Futures Trading Commission (CFTC) will be notified of the 2014 standard freight rate for Live Cattle carcass deliveries during the week of February 3, 2014, via the weekly notification procedures set forth in Part 40 of the CFTC Regulations.
Inquiries regarding the aforementioned may be directed to Matt Herrington, Commodity R&PD, 312-338-2787, email@example.com.
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