The CME Group, home of the Chicago Mercantile Exchange where U.S. cattle contracts are traded, will require that all cattle delivered against live cattle contracts must be born and raised solely in the United States. The move announced last week was in preparation for Monday’s announcement on Country-of-Origin labeling. CME Group made the adjustment to clarify existing live cattle futures delivery regulations if the U.S. should choose to repeal COOL. CME said in a statement that “the purpose of these rule changes is to maintain the status quo in an uncertain policy environment since the current U.S. origin requirement is dependent on COOL being in place,” according to Reuters. The new requirement, effective December 18th, covers all currently listed trading months through April 2017.
The Senate could vote yet this week to repeal COOS following Monday’s tariff announcement by the World Trade Organization. CME said it will not list additional live cattle futures and options contract months until it is determined whether cattle of non-U.S. origin should be allowed for delivery against live cattle futures contracts after the April 2017 trading month.