Effective February 2, 2015, the Chicago Mercantile Exchange Inc., (CME or Exchange) will amend the standard freight rate for the Live Cattle Futures contract (Rulebook chapter: 101; Clearing Code: LC; CME Open Outcry Code: LC; CME Globex Code: LE; CME ClearPort Code: 48). 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 2, 2015, this rate will be $4.10 per mile per contract, a decrease of $0.30 from the 2014 rate of $4.40 per mile per contract.
The Commodity Futures Trading Commission (CFTC) will be notified of the 2015 standard freight rate for Live Cattle carcass deliveries during the week of February 9, 2015, via the weekly notification procedures set forth in Part 40 of the CFTC Regulations.
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