CME Live Cattle Futures Set Open Interest Record

For seven consecutive sessions beginning on November 16, open interest in futures on live cattle has set new records on the Chicago Mercantile Exchange (CME), culminating on November 24 with a record 135,586 open positions. The previous record was set on September 30 with 129,625 open positions. Combined open interest in the CME's agricultural futures and options products totalled an all-time high of 348,338 on November 24. Each live cattle contract represents 40,000 pounds of 55 percent choice and 45 percent select USDA grade live steers. Open interest is the number of futures and options contracts outstanding at the close of trading each day. Its significance is that it represents the use of the Merc's risk management instruments by institutions and individuals with a long term stake in the markets. In addition to live cattle, the CME's agricultural complex offers futures, and options on stocker cattle, feeder cattle, boneless beef, boneless beef trimmings, lean hogs, frozen pork bellies and fresh pork bellies, as well as a variety of dairy products.