The Chicago Mercantile Exchange changed its live hog futures contract to carcass-based prices in early 1997. This is in keeping with industry trends of pricing the carcass rather than by live weight. However, most producers still calculate their costs and production measures in live weight dollars per hundred weight (cwt.). Many users of this information still think and function in live weight terms.

A simple table that compares lean hog futures prices to live hog prices follows. This has been found to be useful as a quick reference.

This table is based on assumptions reported in an earlier publication, "An Explanation of Hog Futures Changes," Management Marketing Memo, No.343, by R. Sutton and J. Albrecht, Clemson Univ., Nov. 1996. On the left side of the table, the lean price is multiplied by a factor of 0.74 and rounded to the nearest 0.05 to estimate the live price. On the right side, the live price is multiplied by 1.35 (the reciprocal of 0.74) and rounded to the nearest 0.05 to derive the approximate lean price. All base prices are reported in increments of 0.50.

These are approximate calculations and should only be used as a guideline for estimating equivalent prices. Each producer/user should compute these equivalents for their actual situation.

LEAN HOG FUTURES PRICE EQUIVALENTS
LEAN HOG CONTRACT VS. LIVE HOG PRICE APPROXIMATIONS

Lean $ Live $   Lean $ Live $   50.00 37.00   68.00 50.30 50.50 37.35   68.50 50.70 51.00 37.75   69.00 51.05 51.50 38.10   69.50 51.45 52.00 38.50   70.00 51.80 52.50 38.85   70.50 52.15 53.00 39.20   71.00 52.55 53.50 39.60   71.50 52.90 54.00 39.95   72.00 53.30 54.50 40.35   72.50 53.65 55.00 40.70   73.00 54.00 55.50 41.05   73.50 54.40 56.00 41.45   74.00 54.75 56.50 41.80   74.50 55.15 57.00 42.20   75.00 55.50 57.50 42.55   75.50 55.85 58.00 42.90   76.00 56.25 58.50 43.30   76.50 56.60 59.00 43.65   77.00 56.95 59.50 44.05   77.50 57.35 60.00 44.40   78.00 57.70 60.50 44.75   78.50 58.10 61.00 45.15   79.00 58.45 61.50 45.50   79.50 58.85 62.00 45.90   80.00 59.20 62.50 46.25   80.50 59.55 63.00 46.60   81.00 59.95 63.50 47.00   81.50 60.30 64.00 47.35   82.00 60.70 64.50 47.75   82.50 61.05 65.00 48.10   83.00 61.40 65.50 48.45   83.50 61.80 66.00 48.85   84.00 62.15 66.50 49.20   84.50 62.55 67.00 49.60   85.00 62.90 67.50 49.95   85.50 63.25

Live $ Lean $   Live $ Lean $   37.00 50.00   55.00 74.30 37.50 50.70   55.50 75.00 38.00 51.35   56.00 75.70 38.50 52.00   56.50 76.35 39.00 52.70   57.00 77.05 39.50 53.40   57.50 77.70 40.00 54.05   58.00 78.40 40.50 54.75   58.50 79.05 41.00 55.40   59.00 79.75 41.50 56.10   59.50 80.40 42.00 56.75   60.00 81.10 42.50 57.45   60.50 81.75 43.00 58.10   61.00 82.45 43.50 58.80   61.50 83.10 44.00 59.45   62.00 83.80 44.50 60.15   62.50 84.45 45.00 60.80   63.00 85.15 45.50 61.50   63.50 85.80 46.00 62.15   64.00 86.50 46.50 62.85   64.50 87.15 47.00 63.50   65.00 87.85 47.50 64.20   65.50 88.50 48.00 64.85   66.00 89.20 48.50 65.55   66.50 89.85 49.00 66.20   67.00 90.55 49.50 66.90   67.50 91.20 50.00 67.55   68.00 91.90 50.50 68.25   68.50 92.55 51.00 68.90   69.00 93.25 51.50 69.60   69.50 93.90 52.00 70.25   70.00 94.60 52.50 70.95   70.50 95.25 53.00 71.60   71.00 95.95 53.50 72.30   71.50 96.60 54.00 73.00   72.00 97.30 54.50 73.65   72.50 97.95

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updated 11/3/97