CME Pork Cutout
futures and options

Coming in November.

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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. Slated to launch on November 9,* these contracts will be cash-settled to the CME Pork Cutout Index. The contracts will complement CME Lean Hog futures and options, expanding our lineup of leading Agricultural benchmarks.

*Pending all relevant regulatory reviews.

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For more information, please contact a member of our team at

Trading resources

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
TAS: Monday – Friday 8:30 am - 1:00 pm CT
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.
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)

*Pending all relevant regulatory reviews.

Learn about the pork cutout

Learn the fundamentals behind the pork cutout – what it is, how it impacts pork pricing, and more.

Contract resources

CME Pork Cutout Index

Get an overview of the Pork Cutout Index and how its calculated.


Get more information about Pork Cutout futures and options contracts at CME Group.

Pork Cutout Futures and Options Fact Card

Get an overview of Pork Cutout futures and options including contract specifications.

Cash-settled commodity index prices

Find daily price data for CME Group Indexes on Pork Cutout, Feeder Cattle, Lean Hogs, and Fresh Bacon.

Export Demand has Fast Tracked the Evolution of Pork Markets

Featured OpenMarkets white paper discussing the evolution of Pork markets.

The Pork Cutout vs. Lean Hog Spread

Learn more about inter-commodity spread trades between the Pork Cutout futures and options contracts and the Lean Hog futures and options contracts.


Self-Study Guide to Hedging with Livestock Futures & Options

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The Livestock Overview

Video module to learn the trading basics and history of Livestock futures and options at CME Group.

Lean Hogs Product Overview

CME Group Lean Hog futures product overview video.

Hedging with Livestock Futures and Options

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