Chicago Mercantile Exchange

Clearing House Advisory Notice

Volume 99-90

September 30,1999

To: Clearing Member Firms

Attn: Back Office Managers

Delivery Personnel

From: Clearing House Department

Re: Live Cattle Changes

# DELIVERY POINTS

Effective November 1, 1999, Omaha, Nebraska will no longer be an approved delivery point for Live Cattle deliveries at the Chicago Mercantile Exchange. Market participants anticipating delivery of Live Cattle at Omaha for the October 1999 delivery period should monitor this situation to ensure the ability to deliver at this location.

# INTERPRETATION OF RULE 1503.A. -TENDERING A CERTIFICATE

The seller is responsible for determining, in advance of tendering a Certificate, if the delivery point stockyards will be able to accommodate a live-graded delivery on the sixth business day following the day of tender (fourth business day following the day of tender if tender is on or after the last trading day) should the buyer request one. If the buyer requests a live-graded delivery which the stockyards is unable to accommodate, then this will be deemed a failure by the seller to present a load of cattle for USDA inspection under Rule 1504.B.8.

# CARCASS GRADED DELIVERIES

The USDA revised the “National Carcass Premiums and Discounts for Slaughter Steers and Heifers” report. The revision added a premium/discount category for carcasses weighing from 550 to 600 pounds. This change was done to provide consistency between this report and the “USDA Estimated Composite Of Boxed Beef Cut-Out Values” report which was also revised and required a revision to the Live Equivalent Choice Select Spread (LECSS).

Effective with the October 1999 Live Cattle deliveries rule 1504.C.5.a. has been amended to raise the minimum carcass weight from 500 to 600 pounds and to amend rule 1504.C.5.b. to include an adjustment for carcasses weighing between 550 to 600 pounds based on the Premium and Discount report. Currently, the adjustments for this weight range is zero. Likewise, the adjustment for the 900 to 950 pound range has been zero since it was first published.

If there are any questions, please contact the Deliveries Unit at (312) 930-3172.