CME Lean Hog Futures Top 50,000 Open Interest

Open interest in lean hog futures traded on the Chicago Mercantile Exchange (CME) rose to record levels at the close of trading on April 28. The 51,844 open futures positions marked the first time open interest in lean hogs has surpassed the 50,000 mark. "The phenomenal growth in open interest in the Merc's lean hog contract proves we've kept in tune with market demand by offering a carcass-weight based product," said Terrence Duffy, CME Vice Chairman and a lean hog trader. Michael J. Downs, Chairman of the CME Lean Hog Committee, said: "With open interest showing strong growth, the lean hog contract is meeting customer demand for risk management in the volatile price movement we've experienced over the last six months." Average daily volume in lean hog futures is 9,373 contracts year-to-date, up nearly 11 percent from last year's average of 8,477. Each lean hog contract, which the CME first launched in November 1995, represents a lean value of 40,000 pounds of carcass weight and settles to the CME Lean Hog IndexT, a two-day weighted average of lean hog values collected from major U.S. hog producing regions. The data is collected by the U.S. Department of Agriculture (USDA). Contract expirations in the months of February, April, June, July, August, October and December are listed for trading.