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Ticker: LH
Exchange: CME
Trading Hours: 9:10 a.m. to 1:00 p.m. (CST)
Contract Size: 40,000 pounds of lean value hog carcasses
Contract Months: Feb, Apr, Jun, Jul, Aug, Oct, Dec
Price Quote: 1 point = $.0001 per hundred pounds = $4.00
Tick Size: 0.00025=$10.00
Last Trading Day: Trading shall terminate on the tenth business day of the contract month
Daily Price Limit: $0.02/lb, 200 points, $800


40 Yr Seasonal Chart Long-Term Chart Supply & Demand Tables
Cold Storage Hog And Pig Report

Fundamental Overview:

More than half the inventory share of U.S. hog marketing's now come from contract hog operations. In a contractual agreement, the contractor provides the hogs, feed, medication and supplies while the contractee provides the housing, utilities and labor. Most hog production still occurs in Corn Belt states, but Southern states have seen a dramatic growth in contractual operations in recent years. Still, most U.S. producers continue to raise hogs in farrow-to-finish operations. As of late 2001 the total number of hogs under contract, owned by operations with over 5,000 head total inventory, but raised by contractees, accounted for 33% of the total U.S. inventory vs. 30% in 2000.

The U.S. is the world's largest pork exporter: about 1.5 billion pounds in 2001 vs. 1.3 billion in 2000 and forecast of 1.4 billion in 2002. Japan, Russia, Canada and Mexico are generally the largest importers of U.S. pork. The U.S. imports pork products, mostly from Canada and Denmark, the total of which is generally less than one billion pounds. The U.S. also imports live hogs from Canada.

Lean hog futures and options are traded on the Chicago Mercantile Exchange (CME) where futures settle to the CME lean hog Index (TM). Their proprietary index tracks the value of lean pork at select U.S. packing plants.







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