Merc Considers Closing Illinois Yards to Futures
The Chicago Mercantile Exchange is again considering closing the two remaining delivery points east of the Mississippi River for cattle sold on futures markets--at Peoria and Joliet.
The exchange withdrew an earlier request for the closures last month, bowing to opposition from area livestock growers. But Michael Gorham, the exchange’s vice president of commodity research, said the Mercantile board would consider a proposal to close the Peoria Union Stock Yards and the Joliet Stockyards as delivery points for futures contracts.
The Merc’s proposal would not close either stockyard entirely. It would eliminate only the delivery of futures cattle at each yard, requiring sellers of cattle on futures contracts to ship animals to delivery points in Nebraska, Texas, Colorado and western Iowa.
Closure of the two stockyards is sought mostly by meatpackers whose slaughterhouses are concentrated in the major cattle-producing Western states.