CME Group launches boxed beef index

We are learning more about CME Group’s new “Boxed Beef Index”.

The goal is to provide better price discovery to the beef industry and it follows a similar index released late last year for pork cutouts. Comparing this index to the pork version can offer insight to customer demand. Putting the numbers up against USDA reports or packer margins can help manage risk.

CME Group says that the Boxed Beef Index is based on data that is readily available by USDA.

According to Tim Andriesen, “It is calculated by dividing the five-day total value of Choice and Select beef prices by the five-day total number of loads. The result is a transparent daily price that is denominated in dollars per hundredweight. Ultimately, we believe our Boxed Beef Index can become the benchmark price reference for beef.”

The index is a free pricing tool and it is not a tradable product.

For more information click HERE.