Clearing House Advisory Notices
To | Clearing Member Firms; Back Office Managers; Delivery Personnel
From | CME Clearing
Subject | Live Cattle Delivery Process Changes & New Live Cattle Country of Origin Affidavit
Notice Date | 2008-09-26
Notice Number | 08-245
Effective Date | 2008-09-26
Effective with the October 2008 Live Cattle Deliveries the following changes will impact live and carcass deliveries. Below is a list of the changes: LIVE GRADED DELIVERIES The requirement that the average weight of a par delivery unit must be between 1,100 and 1,425 pounds has been eliminated. The requirement that individual steers at par must weigh no more than 100 pounds above or below the average weight of the unit has been eliminated. The 3 cent discount associated with those steers weighing from 100 to 200 pounds over or under the average weight of the delivery unit has been eliminated. Steers delivered weighing from 1,475 pounds to 1,550 pounds will be discounted at the same market-based discount used for 950-1000 pound carcasses in carcass graded deliveries. CARCASS GRADED DELIVERIES Under Rule 10103.C.5.g. Other Deviations, if one or more carcasses are removed from a delivery as the result of condemnation and/or are considered unacceptable for entry into normal fresh marketing channels and the total live weight falls below the 5% tolerance the only replacement method available is monetary compensation. The ability to purchase additional carcasses to satisfy delivery has been eliminated. If the seller fails to present deliverable cattle to the slaughter plant on the date and time as specified by the buyer then the seller will be penalized $0.015 per pound per business day, payable to the Exchange, until proper delivery is made. COUNTRY OF ORIGIN AFFIDAVIT Any clearing member firm submitting an intent to deliver for Live Cattle must provide CME Clearing with a completed Live Cattle Country of Origin Affidavit in addition to the Live Cattle Feeding Affidavit. The Live Cattle Country of Origin Affidavit states the cattle being tendered have been born and raised exclusively in the United States, as defined by the USDA in 7 CFR 65 (Mandatory Country of Origin Labeling of Beef, Pork, Lamb, Chicken, Goat Meat, Perishable Agricultural Commodities, Peanuts, Pecans, Ginseng and Macadamia Nuts). A copy of the Affidavit is attached and is also available on the Live Cattle Intent screen in the Deliveries System. CHECK OFF FEE REMINDER As a reminder for cattle deliveries, there is a Check Off fee of $1.00 per head of cattle delivered that is collected by the Cattlemen’s Beef Board to fund research and promote the sale of beef. In a carcass delivery, the clearing member firm representing the buyer collects a checkoff fee from the seller to provide to the slaughter plant. In a live delivery, the seller’s clearing member firm must withhold this amount from the customer and forward the amount to the stockyard. The checkoff fee amount is made available on the cattle invoices. If there are any questions or concerns, please do not hesitate to contact Deliveries at 312- 930-3172. Printer Friendly Version... New Live Cattle Country of Origin Affidavit