CME Group beef trim contracts to target ground beef risk management
Proposed 90% and 50% lean beef trim futures and options would give processors and end users a more direct tool for managing trim price volatility.
Derivatives marketplace CME Group plans to launch two types of beef trim contracts to help the agriculture industry manage risk associated with the key ingredient in producing hamburgers. Trading is expected to start on July 20, 2026, pending regulatory review.
The financially settled 90% and 50% lean beef trim futures and options contracts track products used to produce high-volume ground beef. In the physical market, 90% and 50% represent the lean percentages for beef trim relative to the fat.
"These new contracts are designed for the last stage of bringing cattle to market, giving producers a complete set of risk management tools," said John Ricci, managing director and global head of agricultural products for CME Group. "By offering both 90% and 50% lean beef trim specifications, market participants can now precisely manage the input costs tied to popular retail blend ratios, bridging the gap between live cattle prices and the ground beef they ultimately sell."
"The launch of CME's Group's Beef Trim futures contracts is a meaningful step forward for risk management in protein markets," said Taylor Coughlin, global market forecasting and analytics lead at FMG Global. "Beef trim prices have been highly volatile, and until now market participants have had limited tools to hedge that exposure directly. A dedicated futures contract improves price transparency and discovery while giving packers, processors and end users a more effective way to manage price risk. Ultimately, this kind of innovation strengthens the supply chain by enabling participants to make more informed, forward-looking decisions in an increasingly dynamic market."
CME Group achieved record annual average daily volume (ADV) of 1.9 million contracts for agricultural products in 2025 along with record annual ADV for live cattle futures and options (111,718) and feeder cattle futures and options (31,545 contracts).
The new 90% and 50% Lean Beef Trim futures and options contracts will be listed and subject to the rules of CME.
Source: CME Group
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