The Chicago Mercantile Exchange (CME) recently announced it has received applications from two Nebraska stockyards to become approved delivery points for the CME Live Cattle Contract. The applications were submitted by Lexington Livestock Market, LLC for their Lexington, NE location and Huss Livestock Market, LLC for their Kearney, NE location.
In a letter to CME this past February, USCA stated, “The need to maintain deliverable supply, as well as sufficient sale barn capacity through which that supply can be delivered against the CME Live Cattle Contract.” The letter also requested a review of the current approved delivery locations and provided the Lexington and Huss Livestock Markets, along with six other auction facilities throughout Nebraska and Kansas, as potential locations meeting CME’S criteria.
CME responded to USCA’s letter stating they would review the suggested locations as potential additions to their existing delivery points.
USCA Marketing Committee Chair Allan Sents commented on the CME announcement, “USCA commends Lexington and Huss Livestock for taking the initiative to become approved delivery points. The additional delivery points will improve the viability of contracts by offsetting the deliverable capacity of sale barns located outside of reasonable, and economical, proximity to packing plants.”
“We encourage the CME to review and approve the two applications; Lexington and Huss are well-positioned to clear inventory in every direction of their central Nebraska locations and will help restore order in the cattle market.”