CME Lean Hog Futures Options Trading

Free Lean Hog Futures Trading Guide

Lean Hog Futures News

CME Lean Hog Futures Options Trading

Daily Livestock Report

Electronic Trading of Livestock with Ken “Woodie” Wood

Introduction to Hog Feeding Spreads Article (PDF)

Lean Hog Chart book

lean hogs futures commodity

 

 

Lean Hog Futures

Lean Hog Fundamentals:

Most hog production occurs in the Midwest. The largest hog producing states are Iowa, North Carolina, Minnesota and Illinois.

The U.S. is the world's largest pork exporter.

Normally, it takes six months to raise a pig from birth to slaughter.

Hogs are generally ready for market / slaughter when they reach a weight near 250 pounds.

Tips on Trading Lean Hog Futures:

  • Watch the price of corn as that is mainly what hogs are fed. If the price of corn rises substantially, farmers will tend to take their hogs to market at lower weights (younger) to avoid the high feed costs. That typically causes lean hog futures prices to drop as more supply comes on line.
  • You can estimate the future amount of hog production by monitoring the Hogs and Pigs Report. If the amount of newborn pigs are lower than previous quarters, it is likely the hog production will be lower six months later when they are ready for market.

Contract Specifications

Contract Size 40,000 pounds (˜18 metric tons)

Product Description Hog (barrow and gilt) carcasses

Pricing Unit Cents per pound

Tick Size (minimum fluctuation) $.00025 per pound ($10 per contract)

Daily Price Limits $.03 per pound above or below previous day's settlement price; none for expiring contract in last 2 trading days.

Trading Hours
(All times listed are Central Time)

CME Globex (Electronic Platform) MON 9:05 a.m. - FRI 1:55 p.m. Central Time

Daily trading halts
 4:00 p.m. - 5:00 p.m. Central Time

Open Outcry (Trading Floor) MON-FRI: 9:05 a.m. -1:00 p.m. Central Time

Last Trade Date/Time View Calendar 10th business day of the contract month, 12:00 p.m.

Contract Months View Listings Feb, Apr, May, Jun, Jul, Aug, Oct, Dec

Settlement Procedure Daily Livestock Settlement Procedure (PDF)

Final Lean Hogs Futures Settlement Procedure (PDF)

Position Limits Non-Spot: 4,575 contracts in any contract month

 Spot: 950 contracts
All months combined: n/a

See CME Rule: 15202.E  

Product Ticker Symbols
CME Globex (Electronic Platform) HE

LN=Clearing

Open Outcry (Trading Floor) LH

Rulebook Chapter 152 

Exchange Rule These contracts are listed with, and subject to, the rules and regulations of CME.

 


 

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