Introducing 90% and 50% Lean Beef Trim Futures and Options
COMING JULY 20*
*Pending regulatory review
Explore 90% and 50% Lean Beef Trim futures and options for more ways to manage risk across the cattle value chain.
Resources
Key features
Blend with precision
Manage risk associated with reaching specific retail ground beef blend ratios using contracts for 90% and 50% lean beef trim.
Exchange-traded benefits
Enjoy greater price transparency with daily trading times plus the safety and security of CME Clearing backing every transaction.
Flexible execution
Trade contracts electronically on the CME Globex platform or negotiate and execute block trades through CME ClearPort.
Contract specifications
| [width:12%] | 90% Lean Beef Trim futures[width:44%] | 50% Lean Beef Trim futures[width:44%] |
| TRADE UNIT | 20,000 pounds | 20,000 pounds |
| TICK SIZE | Regular: 0.0005/lb = $10.00 | Regular: 0.0005/lb = $10.00 |
| PRODUCT CODE | BTN | BTF |
| CONTRACT LISTING | Monthly contracts listed for 12 consecutive months | Monthly contracts listed for 12 consecutive months |
| LAST TRADING DAY | Last Friday of the contract month | Last Friday of the contract month |
| TRADING HOURS | CME Globex: Monday – Friday: 8:30 a.m. – 1:05 p.m. CT | CME Globex: Monday – Friday: 8:30 a.m. – 1:05 p.m. CT |
| INDEX METHODOLOGY/FINAL SETTLEMENT | CME Group will utilize a monthly weighted average of weekly prices published by the USDA in reports LM_XB450 and LM_XB460 for Fresh 90% lean trimmings. Expiration (LTD) will occur on the Last Friday of each month and final settlement will be on the following Tuesday using the reports issued on the prior Friday plus the previous three (3) respective reports. | CME Group will utilize a monthly weighted average of weekly prices published by the USDA in reports LM_XB454 and LM_XB460 for Fresh 50% lean trimmings. Expiration (LTD) will occur on the Last Friday of each month and final settlement will be on the following Tuesday using the reports issued on the prior Monday and Friday plus the previous three (3) respective reports. |
| [width:12%] | 90% Lean Beef Trim options[width:44%] | 50% Lean Beef Trim options[width:44%] |
| TRADE UNIT | One 90% Lean Beef Trim futures contract | One 50% Lean Beef Trim futures contract |
| TICK SIZE | Regular: 0.0005/lb = $10.00 | Regular: 0.0005/lb = $10.00 |
| PRODUCT CODE | BTN | BTF |
| STRIKE PRICE INTERVAL | Strikes listed for 50% of the underlying settlement price above and below the at-the-money strike at 5 cent per pound increment plus dynamic strikes above and below the highest and lowest pre-listed strikes at 5 cent per pound increment. Additional strikes listed for 25% of the underlying settlement price above and below the at-the-money strike at 2.5 cent per pound increment in the nearest 3 monthly contracts. |
Strikes listed for 50% of the underlying settlement price above and below the at-the-money strike at 10 cent per pound increment plus dynamic strikes above and below the highest and lowest pre-listed strikes at 10 cent per pound increment. Additional strikes listed for 25% of the underlying settlement price above and below the at-the-money strike at 5 cent per pound increment in the nearest 3 monthly contracts. |
| CONTRACT LISTING | Monthly contracts listed for 12 consecutive months | Monthly contracts listed for 12 consecutive months |
| LAST TRADING DAY | First Friday of the contract month | First Friday of the contract month |
| EXERCISE | American style. Options buyers may exercise an options contract on any business day prior to expiration by giving notice to CME Clearing by 6:00 p.m. CT. Exercised options are randomly assigned to options sellers. Options in the money after the close on the last trading day are automatically exercised. | American style. Options buyers may exercise an options contract on any business day prior to expiration by giving notice to CME Clearing by 6:00 p.m. CT. Exercised options are randomly assigned to options sellers. Options in the money after the close on the last trading day are automatically exercised. |
| EXPIRATION | Unexercised options on futures shall expire at 7:00 p.m. CT on the last day of trading. | Unexercised options on futures shall expire at 7:00 p.m. CT on the last day of trading. |
| TRADING HOURS | CME Globex: Monday – Friday: 8:30 a.m. – 1:05 p.m. CT CME ClearPort: Sunday 5:00 p.m. – Friday 5:45 p.m CT with no reporting Monday – Thursday from 5:45 p.m – 6:00 p.m. CT |
CME Globex: Monday – Friday: 8:30 a.m. – 1:05 p.m. CT CME ClearPort: Sunday 5:00 p.m. – Friday 5:45 p.m CT with no reporting Monday – Thursday from 5:45 p.m – 6:00 p.m. CT |
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