Although not widely released, the changes were outlined in a “special executive report” dated May 27 and amend all dairy and livestock futures contracts.
Under the changes, the Class III and Class IV milk futures still have a daily price limit change of 75 cents per hundredweight (cwt) above or below the previous day’s settlement price. However, should any Class III or Class IV milk futures contract month settle at the limit up or down, it triggers expanded daily price limits for all contract months to $1.50 per cwt on the next business day. If none of the listed Class III or Class IV milk futures contracts settle at a price change equal to or greater than 75 cents per cwt on the next business day, daily price limits for all contract months revert back to 75 cents per cwt on the following business day.
The rule changes also affect cheese, block cheese, nonfat dry milk and dry whey futures, cash-settled butter, Class III Crush (Class III, cash-settled cheese, block cheese and dry whey) and Class IV Crush (Class IV, cash-settled butter and nonfat dry milk).
Outside of dairy, the rule affects live cattle and feeder cattle futures and lean hog futures.
