Incline Swine Prospects and Choices - PowerPoint PPT Presentation

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Incline Swine Prospects and Choices

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  1. Lean Hog Futures and Options As of June 30, 2010

  2. Lean Hog Futures • Trading Venue Open Outcry, CME Globex System • Contract Size 40,000 pounds • Minimum Price Increment $.00025 per pound ($10 per contract) • Daily Price Limit $.03 per pound ($1200); none in last 2 trading days for expiring contract • Last Trading Day 10th business day of contract month • Contract Months Feb, Apr, May, Jun, Jul, Aug, Oct, Dec • Position Limits 4100 contracts in non-spot month; 950 in spot month • Trading Hours Open Outcry: 9:05 am to 1:00 pm. Globex: 9:05 am Monday to 1:55 p.m. Friday with trading halt from 4-5 pm. daily • Settlement Cash settled to CME Lean Hog Index

  3. CME Lean Hog Index ® • National Prior Day Slaughter Cost (USDA Report LM_HG201) • Producer Sold , Barrows and Gilts • ‘Negotiated’ and ‘Swine or Pork Market Formula’ Values • Average Net Price • Weighted by Head Count and Average Carcass Weight • Averaged over 2 days • Calculated every business day

  4. Lean Hog Options • Trading Venue Open Outcry, CME Globex System • Contract Size 1 Lean Hog futures contract • Minimum Price Increment Same as futures • Strike Prices $.02 per pound • Daily Price Limit None • Last Trading Day Same as futures • Contract Months Same as futures • Position Limit Aggregated with futures equivalents • Trading Hours Open Outcry: 9:05 am to 1:02 pm. Globex: Same as futures

  5. Lean Hog Calendar Spread Options

  6. Lean Hog FuturesTotal Open Interest (at month end)

  7. Lean Hog FuturesTotal Monthly Volume

  8. Lean Hog Futures Average Daily Volume

  9. Lean Hog FuturesSettlement Price by Contract Month

  10. Lean Hog FuturesMonthly Volatility

  11. Contact Us

  12. Futures trading is not suitable for all investors, and involves the risk of loss. Futures are a leveraged investment, and because only a percentage of a contract’s value is required to trade, it is possible to lose more than the amount of money deposited for a futures position. Therefore, traders should only use funds that they can afford to lose without affecting their lifestyles. And only a portion of those funds should be devoted to any one trade because they cannot expect to profit on every trade.  • The Globe Logo, CME®, Chicago Mercantile Exchange®, and Globex® are trademarks of Chicago Mercantile Exchange Inc. CBOT® and the Chicago Board of Trade® are trademarks of the Board of Trade of the City of Chicago. NYMEX, New York Mercantile Exchange, and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. CME Group is a trademark of CME Group Inc. All other trademarks are the property of their respective owners.  • The information within this presentation has been compiled by CME Group for general purposes only. CME Group assumes no responsibility for any errors or omissions. Although every attempt has been made to ensure the accuracy of the information within this presentation, CME Group assumes no responsibility for any errors or omissions. Additionally, all examples in this presentation are hypothetical situations, used for explanation purposes only, and should not be considered investment advice or the results of actual market experience.  • All matters pertaining to rules and specifications herein are made subject to and are superseded by official CME, CBOT, NYMEX nd CME Group rules. Current rules should be consulted in all cases concerning contract specifications.

  13. Lean Hog Futures and Options In a world of increasing volatility, CME Group is where the world comes to manage risk across all major asset classes—interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, and alternative investments like weather and real estate. Built on the heritage of CME, CBOT and NYMEX, CME Group is the world’s largest and most diverse derivatives exchange encompassing the widest range of benchmark products available. CME Group brings buyers and sellers together on the CME Globex electronic trading platform and on trading floors in Chicago and New York. We provide you with the tools you need to meet your business objectives and achieve your financial goals. And CME Clearing matches and settles all trades and guarantees the creditworthiness of every transaction that takes place in our markets.