CME Warns of Potential Shutdown Problems
The world's biggest futures-exchange operator says a prolonged government shutdown could interrupt or delay settlement prices for certain livestock futures contracts. The Department of Agriculture is furloughing staff who produce several reports on data - including cash prices for agricultural products that are used as benchmarks for futures contracts. In addition - the USDA website has been shut down. According to the CME - the lack of USDA data could disrupt the October 2013 contracts for live cattle, lean hog, feeder cattle futures and options. Customers were told Tuesday that a prolonged federal shutdown may require the exchange to modify current settlement procedures for the affected contracts. Grain traders have concerns as well - particularly if USDA doesn't resume work by October 11th when the next World Agricultural Supply and Demand Estimates report is supposed to be released.
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