CME Group Lean Hogs

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CME Group Lean Hogs are a cash-settled futures contract. The lean hog contract replaced the physically delivered live hog contract. Futures and futures options on lean hogs are based on a 40,000-pound contract, and are offered for trading both on through open outcry at CME Group and on the CME Globex electronic trading platform.

The contract months in the lean hog futures are February, April, May, June, July, August, October and December. The commodity symbol for the floor-traded hogs is LH, and for Globex-traded hogs, HE.

On December 4, 2006, CME launched options on live cattle and lean hogs futures traded on the CME Globex electronic trading platform.

Lean Hog Futures
Contract Unit 40,000 pounds
Price Quotation U.S. cents per pound
Trading Hours CME Globex: Monday - Friday: 8:30 a.m. - 1:05 p.m. CT (9:30 a.m - 2:05 p.m. ET)

TAS: Monday - Friday 8:30 a.m. - 1:00 p.m. CT (9:30 a.m - 2:00 p.m. ET)

CME ClearPort: Sunday 5:00 p.m. - Friday 5:45 p.m. CT with no reporting Monday - Thursday from 5:45 p.m. – 6:00 p.m. CT
Minimum Price Fluctuation 0.00025 per pound = $10.00

TAS: Zero or +/- 4 ticks in the minimum tick increment of the outright

Product Code CME Globex: HE

CME ClearPort: LN

Clearing: LN

TAS: HET

Listed Contracts 2 Feb monthly contracts listed the business day after the termination of trading in the Aug contract month

2 Apr monthly contracts listed the business day after the termination of trading in the Oct contract month 2 May monthly contracts listed the business day after the termination of trading in the Dec contract month 2 Jun monthly contracts listed the business day after the termination of trading in the Dec contract month 2 Jul monthly contracts listed the business day after the termination of trading in the Feb contract month 2 Aug monthly contracts listed the business day after the termination of trading in the Apr contract month 2 Oct monthly contracts listed the business day after the termination of trading in the May contract month 2 Dec monthly contracts listed the business day after the termination of trading in the Jun contract month

Settlement Method Financially Settled
Termination of Trading Trading terminates on the 10th business day of the contract month.
Trade at Marker or Trade at Settlement Rules Trading at Settlement (TAS) is subject to the requirements of Rule 524.A. TAS trades off a ""Base Price"" of zero (equal to the daily settlement price) to create a differential versus the daily settlement price in the underlying futures contract month. The TAS clearing price equals the daily settlement price of the underlying futures contract month plus or minus the TAS transaction price.

TAS Table

Settlement Procedures Lean Hog Settlement Procedures
Position Limits CME Position Limits
Exchange Rulebook CME 152
Block Minimum Block Minimum Thresholds
Price Limit or Circuit Price Limits
Vendor Codes Quote Vendor Symbols Listing
Lean Hog Options
Contract Unit 1 futures contract for 40,000 pounds
Minimum Price Fluctuation Full Tick = $.00025 per pound (=$10 per contract);

Half Tick = $.000125 per pound (=$5 per contract)

Price Quotation U.S. cents per pound
Trading Hours CME ClearPort: Sunday 5:00 p.m. - Friday 5:45 p.m. CT with no reporting Monday - Thursday from 5:45 p.m. – 6:00 p.m. CT
CME Outcry: Monday - Friday: 8:30 a.m. - 1:05 p.m. CT
Product Code CME Globex: HE

CME ClearPort: LN

Open Outcry: Put: PH Call: CH

Clearing: LN

Listed Contracts Monthly contracts listed as follows:

2 months each of May and Jun listed in December.

2 months of Jul listed in February.

2 months of Aug listed in April.

2 months of Oct listed in May.

2 months of Dec listed in June.

2 months of Feb listed in August.

2 months of Apr listed in October

Termination of Trading Trading terminates on the10th business day of the contract month, 12:00 p.m.
Position Limits CME Position Limits
Exchange Rulebook CME 152A
Vendor Codes Quote Vendor Symbols Listing
Strike Price Listing Procedures Strikes listed for 50% of the underlying settlement price above and below the at-the-money strike at $0.02 per pound increments in all months and additional strikes listed for 25% of the underlying settlement price above and below the at-the-money strike at $0.01 per pound increments in the nearest 3 months.
Exercise Procedure American Style See CME Rule 152A02
Settlement Method Deliverable
Underlying Lean Hog Futures

Futures Contracts Volume[edit]

In 2014, the volume of CME Group Lean Hogs futures traded ranked twentieth among all agricultural futures and options contracts according to the FIA.

Year Total Annual Volume Percent Change
2014 10,656,944 (-)5.5%
2013 11,227,038 (-)1.6%
2012 11,461,892 15.0%
2011 9,969,961 --

Also See[edit]

CME Group commodity products

Resources[edit]