CME Pork Cutout
futures and options

Clear-cut opportunities for enhanced risk management

Arrangements between hog producers and packers or processors today are diverse and ever-evolving. Once based almost exclusively on the value of live hogs, many agreements now pay greater attention on prices further down the value chain, particularly the pork cutout.

New CME Pork Cutout futures and options are designed to give the US pork industry and export markets tailored risk-management tools on the cutout. These contracts are cash-settled to the CME Pork Cutout Index and complement CME Lean Hog futures and options, expanding our lineup of leading Agricultural benchmarks.

Contact us

For more information, please contact a member of our team at pork-cutout@cmegroup.com.

Trading resources

Cash-settled commodity index prices

Hedge more precisely

The contract settles directly to the CME Pork Cutout Index, which tracks prices of pork cutout values. That provides the tight price correlation needed to better manage exposure.

Tap into an active market

Explore opportunities driven by the world’s most consumed protein: The United States produced 27.6 billion pounds of pork in 2019.

Source: United Nations Food and Agriculture Organization (FAO)

Add exchange-traded benefits

Trading futures on a regulated exchange gives you greater price transparency with nearly 24-hour trading access, plus the safety and security of CME Clearing backing every transaction.

Understanding the pork cutout

Source: USDA

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Contract specifications


Contract Title	Pork Cutout Futures	Options on Pork Cutout Futures
Contract Unit	40,000 pounds
Price Quotation	U.S. Cents per pound
Trading Hours	CME Globex: Monday - Friday: 8:30 a.m. - 1:05 p.m. CT Pre-Open: 8:00 am – 8:29.59 am & 2:30 pm – 4:00 pm
	CME ClearPort: 5:00 p.m. Sunday to 5:45 p.m. Friday; with a 15-minute break Monday – Thursday each day beginning at 5:45 p.m.
Commodity Code	PRK	PRK
CME Rulebook Chapter	156	156A
Initial Listing months	DEC20, FEB21, APR21, MAY21, JUN21, JUL21, AUG21, OCT21, DEC21, FEB22, APR22, & MAY22


Minimum price increments	$0.00025 per pound ($10 per tick)	Full Tick: $0.00025 per pound ($10) Half Tick: $0.000125 per pound ($5)


Option Type	-	American
Strike Price listing procedures	-	Strikes listed for 50% of the underlying settlement price above and below the at-the-money strike at $0.02 per pound increments in all months and additional strikes listed for 25% of the underlying settlement price above and below the at-the-money strike at $0.01 per pound increments in the nearest 3 months.
Exercise procedure	-	Any business day that the option is traded until 5:30 p.m. CT
Termination of Trading	Trading terminates on the 10th business day of the contract month.
Settlement Method	Financially settled to the CME Pork Cutout Index.
Position Limits	1,000 contracts net long or short in any single month.
Position Limits	350 contracts net long or short as of the close of trading on the fifth business day of the contract month.
Reportable Level	25 contracts
Block Trade Minimum	5 contracts
Block Trade Reporting Window	5 minutes	15 minutes
CME Globex matching algorithm	F: First In, First Out (FIFO)

View full contract specifications.

Pork Cutout futures and options 11/8/2020
Product Name	CME Globex	Bloomberg	Refinitiv Globex RIC Root	Refinitiv Composite RIC Root	TT	CQG	DTN	Fidessa	FIS Global	ION (Pats & FFastFill)	Itiviti (Orc & Tbricks)	Vela
Pork Cutout Futures	PRK	PRCA <Comdty>	1RPK	RPK	PRK	PRK	@PRK	PRK	PRK	PRK	PRK	PRK
Options on Pork Cutout Futures	PRK	PRCA <Comdty> OMON	1RPK	RPK	PRK	PRK	@PRK	PRK	PRK	PRK	PRK	PRK