CME Launches 2 Beef Trim Contracts as Shrinking US Cattle Herd Drives Prices Higher
Updated
Updated · Bloomberg · Jun 30
CME Launches 2 Beef Trim Contracts as Shrinking US Cattle Herd Drives Prices Higher
2 articles · Updated · Bloomberg · Jun 30
Summary
CME Group began offering futures and options tied to two beef trim products used to make ground beef, hamburger patties and meatballs.
The launch targets a market hit by surging prices as the US cattle herd shrinks, increasing the need for tools to hedge beef-cost volatility.
The contracts cover fattier trimmings typically produced in the US and leaner trimmings largely imported, which are blended to reach desired lean-to-fat ratios.
That makes the new products a pricing and risk-management benchmark for a key input in everyday beef items rather than for whole cuts of meat.