Lean hogs Futures
Commodity and futures prices like
lean hogs prices are usually quoted the same way prices are quoted in the cash market (physical market). That is, in dollars,
cents, and sometimes fractions of a cent. Different commodities are quoted in different trading units. Lean hogs prices are
quoted per ounce. Be certain you understand the price quotation system for the particular commodity that you consider trading.
The CME lean hogs futures contract
is a contract for future physical delivery of 40,000 lbs of lean hogs; however, the vast majority of the futures positions
are offset well before delivery. The CME lean hogs futures contract is priced in dollars and cents per lb. The lean hogs futures
trade in $.0001 increments, equivalent to $4.00 per contract.
Example of Futures Quote:
64.40 means $.6440 per lb
Lean hogs Options Quotes
The CME lean hogs options contract controls 40,000 lbs of lean
hogs based on the underlying futures contract.
Example of Options Quote:
2.6 means $.026 per lb
$.026 X 40,000 lbs = $1,040.00