CHICAGO, Sept. 29, 2020 /PRNewswire/ -- CME
Group, the world's leading and most diverse derivatives
marketplace, today announced it will launch Pork Cutout futures and
options on November 9, 2020, pending
all relevant regulatory review periods.
"As the market has evolved, our customers continue to look for
new tools to manage the price risk associated with hog and pork
production," said Tim Andriesen, CME
Group Managing Director of Agricultural Products. "The Pork Cutout
futures and options are complementary to our Lean Hog contracts and
will provide clients with the ability to manage risk and discover
price from the hog all the way to the meat case."
Hogs are increasingly bought and sold in the physical market
based on a formula which uses the cutout. The Pork Cutout reflects
the approximate value of a hog calculated using the prices paid for
wholesale cuts of pork. The values, or cuts, used to calculate the
pork cutout include the loin, butt, picnic, rib, ham and belly. The
new contracts reflect the price of the wholesale product after
processing.
"The National Pork Producers Council welcomes the introduction
of the new Pork Cutout trading vehicle," said NPPC President Howard
"AV" Roth, a pork producer for Wauzeka,
Wisconsin. "We applaud CME Group for providing another risk
management option, in addition to the Lean Hog contract, and for
enhancing market visibility, which is so important to maintaining a
highly competitive and innovative pork production system in
the United States."
Pork Cutout futures and options will be financially-settled to
the CME Pork Cutout Index, which is a five-business day weighted
average of prices reported by the US Department of Agriculture
(USDA) and published in its "National Daily Pork Report Fob Plant -
Negotiated Sales – Afternoon" report daily.
The new contracts will be quoted in U.S. cents per pound, will
have a contract size of 40,000 pounds and will be available for
trading on CME Globex or through block trades via CME ClearPort,
and will be listed by and subject to the rules and regulations of
CME.
For more information on CME Group's Pork Cutout futures and
options and the CME Pork Cutout Index, please visit:
www.cmegroup.com/pork-cutout.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) enables clients to trade futures,
options, cash and OTC markets, optimize portfolios, and analyze
data – empowering market participants worldwide to efficiently
manage risk and capture opportunities. CME Group exchanges offer
the widest range of global benchmark products across all major
asset classes based on interest rates, equity
indexes, foreign exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex® platform,
fixed income trading via BrokerTec and foreign exchange trading on
the EBS platform. In addition, it operates one of the world's
leading central counterparty clearing providers, CME
Clearing. With a range of pre- and post-trade products and
services underpinning the entire lifecycle of a trade, CME Group
also offers optimization and reconciliation services through
TriOptima, and trade processing services through Traiana.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile Exchange
Inc. CBOT and Chicago Board of Trade are trademarks
of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile
Exchange and ClearPort are trademarks of New York Mercantile
Exchange, Inc. COMEX is a trademark of Commodity Exchange,
Inc. BrokerTec, EBS, TriOptima, and Traiana are trademarks of
BrokerTec Europe LTD, EBS Group LTD, TriOptima AB, and Traiana,
Inc., respectively. Dow Jones, Dow Jones Industrial
Average, S&P 500 and S&P are service and/or trademarks of
Dow Jones Trademark Holdings LLC, Standard & Poor's Financial
Services LLC and S&P/Dow Jones Indices LLC, as the case may be,
and have been licensed for use by Chicago Mercantile Exchange
Inc. All other trademarks are the property of their
respective owners.
CME-G
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SOURCE CME Group