CME to allow delivery of heifers against live cattle futures

CHICAGO Fri Feb 28, 2014 6:19pm EST

CHICAGO Feb 28 (Reuters) - CME Group Inc said on Friday that it plans to amend deliveries against live cattle futures to include heifers beginning with the listing of the August 2015 delivery month, the exchange said in a statement.

The change to the delivery specifications will be listed for the trade date of March 17, 2014. The exchange will temporarily delay the initial listing of the August 2015 contract month until March 17 to coincide with the amendments.

Changes to the current delivery policy include heifers subject to the same yield, quality and age specifications as steers, according to the exchange.

Also, heifers suitable for delivery will be at par value with steers.

"The rule change will result in a modest increase in the percentage of total cattle that will be delivered," said Joe Ocrant, president of Chicago-based Oak Investment Group.

Heifers were not initially included in deliveries because they are smaller in size than steers, which means they produce smaller cuts of meat than some end-users require, he said.