LMFE TO CONCENTRATE ON CASH SETTLED CONTRACTS

  The London Meat Futures Exchange, LMFE,
  will cease trading in its deliverable pigmeat contract from
  April 3, the LMFE said.
      The move will enable the exchange to concentrate on the
  cash settled contracts introduced last year.
      "This allows the exchange and its members to concentrate our
  marketing on the pig and live cattle contracts," LMFE official
  Peter Freeman said. "These two have already shown their
  effectiveness for hedging, and the trade in both contracts is
  increasing," he added.
      "Using the futures market allows better planning and forward
  price fixing that our industry needs," chairman Pat Elmer said.
      Some 131 pig contracts were settled against the Meat and
  Livestock Commission's Average All Pigs Price in February,
  which represents hedging for over 13,000 pigs, more than twice
  the number cash-settled in January, the LMFE said.
      Cash settlement on the new cattle and pig contracts was
  introduced last June in the expectation that the appeal of the
  futures market to farmers, abattoirs and users of meat would
  increase because of the absence of a delivery requirement.
  

