The Chicago Mercantile Exchange Inc. (CME) has taken an emergency action with respect to its live cattle and feeder cattle contracts in response to market activity following the announcement of the discovery of Bovine Spongiform Encephalopathy (“Mad Cow Disease”) in one Holstein dairy cow near Mabton, Washington.  Holstein cattle are not deliverable on CME’s cattle contracts.

The Exchange has determined to accelerate CME’s schedule for expanded daily price limits in its live cattle and feeder cattle futures contracts.  For the live cattle futures contract, today, Friday, Dec. 26, the daily price limit will be $0.03 per pound.  If the December 2003 or February 2004 contract month is locked either up or down the limit at the close today, then the limit on Monday, Dec. 29, and on Tuesday, Dec. 30 will be expanded to $0.05 per pound.  If either contract month is locked limit at the close of trading on Tuesday, Dec. 30, the limit on Wednesday, Dec. 31 will continue to be $0.05 per pound.  Otherwise it will revert to $0.03 per pound.  The same accelerated schedule will be in effect for feeder cattle futures.

Trading hours for both contracts on Friday, Dec. 26, will be the planned holiday hours of 9:05 a.m. to 12:00 noon Central Time. 

If you have any questions regarding this notice, please contact Marilee Radecki at 312.930.8193, email mradecki@cme.com, or Toni Partee at 312.930.8288, email tpartee@cme.com.   Thank you.