Managing risk, both on the cost of production and to maximize revenue opportunities, are crucial for business. Kevin Sheehan, National Pork Board Director of Processor Engagement, says the CME Cutout Contract is an additional price discovery and contract option for producers.
National Pork Board uses Checkoff funds for education, research and promotion on behalf of nationwide producers. The markets section on porkcheckoff.org houses insightful details.
The CME Cutout started in November 2020 to provide an additional tool for managing the price risk associated with hogs and pork production. Sheehan says there are similarities between the CME Cutout and the Lean Hog contract.
Producers can find the CME cutout resources at porkcheckoff.org.
