The U.S. government shutdown has claimed the CME Group's price indexes for lean hogs and feeder cattle. Some futures contracts settle based on the values of the indexes.
The government shutdown, the first in 17 years, has closed parts of the U.S. Department of Agriculture, which distributes the data that the CME uses to calculate the indexes. In addition, farmers and other commercial players use the indexes to gauge the market.
Below is an open letter that the CME sent to its customers today.
To Our Customers:
Following our letter to customers yesterday, please note that the calculation and distribution of the CME Lean Hog and Feeder Cattle Indexes has been temporarily suspended due to the unavailability of relevant data reported by the USDA-AMS.
We will continue to monitor the situation as it relates to any potential changes to the settlement procedures for the October 2013 Livestock futures and options contracts and provide updates accordingly.
Questions regarding this Special Executive Report may be directed to Jack Cook, Director, Commodity Research & Product Development, at 312-930-3295, Jack.Cook@cmegroup.com or David Lehman, Managing Director, Commodity Research and Product Development, 312-930-1875, David.Lehman@cmegroup.com.