CME Group to launch beef trim futures contracts
New tools target hedging for ground beef production costs
1 July 2026
1 minute read
By: CME Group plans to launch two new beef trim futures and options contracts on July 20, pending regulatory review, aimed at helping the agriculture industry manage risk tied to a key ingredient in ground beef production, according to a news release from the group.
The financially settled 90% and 50% Lean Beef Trim contracts will track products used in high-volume ground beef production. In the physical market, the percentages refer to the lean-to-fat ratio of beef trim.
"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 at 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."
"Beef trim prices have been highly volatile, and until now market participants have had limited tools to hedge that exposure directly," said Taylor Coughlin, global market forecasting and analytics lead at FMG Global. "A dedicated futures contract improves price transparency and discovery while giving packers, processors and end users a more effective way to manage price risk."
CME Group recorded an annual average daily volume of 1.9 million contracts for agricultural products in 2025, along with record annual volumes for live cattle futures and options at 111,718 contracts and feeder cattle futures and options at 31,545 contracts.
