CHICAGO, Aug 25 (Reuters) - The Chicago Mercantile Exchange will expand live cattle future’s daily price limits for the last two days of trading beginning Sept. 7 for trade on Monday Sept. 8, the exchange said in a statement on Monday.
The exchange, the world’s largest for livestock futures, said new expanded trading limit will be 5.000 cents per lb for the final two trading days of the expiring month contract.
Currently, live cattle futures has a maximum daily price limit of 3.000 cents per lb, but does not have an expanded limit.
The newly expanded price limits will not affect live cattle futures for August delivery, which will expire on Friday Aug. 29.
The adjustment is based on ongoing discussions with customers and market participants, said CME spokesman Chris Grams.
“There has been some desire for livestock customers to have a little bit more flexibility in the last two days of trading ahead of expiration,” said Grams.
Reporting By Theopolis Waters; editing by Andrew Hay