This is the introductory paragraph from the CME Group Special Report S-6849
Under the provisions of the CME rules noted below, no cattle which are unmerchantable shall be deliverable.
In August of 2013, Tyson Fresh Meats, Inc. notified cattle feeders that, as of September 6, 2013, it would suspend its purchases of cattle that have been fed zilpaterol. In early September of 2013, Cargill, Incorporated provided notice of its October suspension of purchases of zilpaterol-fed cattle in North America, pending further research.
This is the introductory paragraph from the CME Group Special Report S-6849
Under the provisions of the CME rules noted below, no cattle which are unmerchantable shall be deliverable.
In August of 2013, Tyson Fresh Meats, Inc. notified cattle feeders that, as of September 6, 2013, it would suspend its purchases of cattle that have been fed zilpaterol. In early September of 2013, Cargill, Incorporated provided notice of its October suspension of purchases of zilpaterol-fed cattle in North America, pending further research. Other major slaughter houses may enforce similar policies without formal market notice. The terms of the CME’s Live Cattle Futures contract requires that cattle received in the delivery process be merchantable and therefore readily salable into normal commercial marketing channels. This notice clarifies that cattle which have been fed additives which prohibit them from being purchased for slaughter under the current commercial practices imposed by major cattle slaughter facilities are unmerchantable and are to be excluded from the delivery unit.