The addition of a May contract will provide producers and packers more precise risk management coverage between April and June, while allowing market participants to capture seasonal price movements that typically occur during that period.
Options on the May futures contract-as with all lean hogs contract months-will be available for trading on the business day following activity in the underlying futures contract.
In addition, beginning with the May 2002 contract, final settlement will be based on data to be reported by the United States Department of Agriculture (USDA) in the National Daily Direct Prior Day Hog Report-Slaughtered Swine (Report LM_HG201). The first release day for this report is scheduled for June 18, 2001.
Chicago Mercantile Exchange Inc. (www.cme.com) is an international marketplace that brings together buyers and sellers on its trading floors and GLOBEX®2 around-the-clock electronic trading system. CME offers futures contracts and options on futures primarily in four product areas: interest rates, stock indexes, foreign currencies and agricultural commodities. On Nov. 13, 2000, CME finalized its transformation into a for-profit, shareholder-owned corporation as it became the first U.S. financial exchange to demutualize by converting its membership interests into shares of common stock that can trade separately from exchange trading privileges. The exchange moves about $1 billion per day in settlement payments, manages $28 billion in collateral deposits and administers more than $1 billion of letters of credit.
