031032 CME To Raise Cattle Price LimitsOctober 14.2003Chicago - The Chicago Mercantile Exchange will raise the daily price limits for its live cattle futures contract, effective Wednesday, in response to the unprecedented price increase in the cash market for live cattle, the exchange said Tuesday in a press release. Currently, the daily price limit is $0.015 per pound above or below the previous day's settlement price. Under the new rules, this price limit stays in effect unless the following events occur: * If either of the two contracts in the even month cycle nearest to expiration settles on the limit bid for two successive days or on the limit offer for two successive days, the price limit shall be raised to $0.030 per pound for all contract months. * If the daily price limit is $0.030 and either of the two contracts in the even month cycle nearest to expiration settles on the limit bid for two successive days or on the limit offer for two successive days, then the price limit shall be raised to $0.050 per pound for all contract months. * If the daily price limit is $0.050 and neither of the two contracts in the even month cycle nearest to expiration settles on the limit bid or limit offer, without regard to market direction, then the daily price limit for all contract months shall revert to $0.030 on the next business day. * If the daily price limit is $0.030 and neither of the two contracts in the even month cycle nearest to expiration settles on the limit bid or limit offer, without regard to market direction, then the daily price limit for all contract months shall revert to $0.015 on the next business day. When the policy goes into effect, the $0.050 limit will apply to trading based on settlement prices for the previous six days.
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