CME Group Pork Cutout futures and options are now live and available for trading. Announced earlier this fall, the Pork Cutout futures and options are designed to give the U.S. pork industry and export markets tailored risk-management tools on the cutout. The contracts are cash-settled to the CME Pork Cutout Index and complement CME Lean Hog futures and options. CME Group says 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. CME Group says hogs are increasingly bought and sold in the physical market based on a formula which uses the cutout. The Pork Cutout reflects the approximate value of a hog calculated using the prices paid for wholesale cuts of pork. The new contracts are quoted in U.S. cents per pound and have a contract size of 40,000 pounds.