The Chicago Mercantile Exchange will offer pork cutout futures and options contracts starting November 9th.  

Steve Meyer, an ag economist with Iowa based Partners for Production Agriculture, says a pork cutout contract is more viable now than in previous years because historically, cutout value and the lean hog index were tightly correlated. He says that is no longer the case.  

“My concern was that introducing a new contract might rob volume and open interest from the lean hog contract and make that a less liquid contract, one that’s harder to get into and out of,” Meyer said.

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