Pork Cutout futures help to manage risk

CME Group recently introduced Pork Cutout futures and options to complement Lean Hog futures and options.

CME Group has introduced a new tool that allows producers to manage risk using the Pork Cutout Index, which reflects prices paid for pork. The index is calculated by taking a five-day weighted average of pork prices reported by the United States Department of Agriculture.

The new CME Pork Cutout futures and options based “off that (index) allow you to manage your value risk, and that is helpful,” said Abhinesh Gopal, head of commodity research at Farms.com Risk Management.

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Source : farms.com