CME Group to Launch Beef Trim Contracts to Manage Risk Across the Cattle Supply Chain

Rhea-AI Summary

CME Group (NASDAQ:CME) plans to launch new 90% and 50% Lean Beef Trim futures and options on July 20, 2026, pending regulatory review. These financially settled contracts aim to help manage price risk in ground beef production and improve price transparency.

CME Group reports record 2025 average daily volume of 1.9 million agricultural contracts, including Live Cattle ADV of 111,718 and Feeder Cattle ADV of 31,545. The new contracts will be listed under CME rules.

Positive

• Launch of 90% and 50% Lean Beef Trim contracts expected July 20, 2026, pending review
• Financially settled futures and options tailored to ground beef input costs
• Record 2025 agricultural ADV of 1.9 million contracts
• Record 2025 Live Cattle ADV of 111,718 contracts
• Record 2025 Feeder Cattle ADV of 31,545 contracts

Negative

• None.

News Market Reaction – CME

+1.03%

+1.03% Session close to close

In the Jun 30 session, CME gained 1.03%, reflecting a mild positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement adds 90% and 50% Lean Beef Trim futures and options, extending CME’s agricultural ...

Analysis

This announcement adds 90% and 50% Lean Beef Trim futures and options, extending CME’s agricultural risk tools after record ADV above 1.9 million contracts. Investors may watch adoption levels and how this niche complements existing cattle products.

Key Figures

Lean beef trim specs: 90% and 50% lean Launch date: July 20, 2026 Agricultural ADV: 1.9 million contracts +2 more

5 metrics

Lean beef trim specs 90% and 50% lean Lean percentages for new Beef Trim futures and options contracts

Launch date July 20, 2026 Expected start of trading for Beef Trim contracts, pending review

Agricultural ADV 1.9 million contracts Record annual average daily volume for agricultural products in 2025

Live Cattle ADV 111,718 contracts Record annual average daily volume for Live Cattle futures and options

Feeder Cattle ADV 31,545 contracts Record annual average daily volume for Feeder Cattle futures and options

Historical Context

5 past events · Latest: Jun 17 (Negative)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Jun 17	Leadership transition	Negative	-3.5%	CEO Terry Duffy to step down, CFO Lynne Fitzpatrick set as successor.
Jun 11	Energy/metals product launch	Positive	+1.8%	Expansion of 24/7 WTI and gold trading, new 10-Barrel WTI contract.
Jun 11	Equity index product launch	Positive	-0.6%	Four new E-mini equity index futures referencing broad U.S. benchmarks.
Jun 11	Micro options launch	Positive	-0.6%	Launch of financially-settled Micro E-mini S&P 500 and Nasdaq-100 options.
Jun 10	Index derivatives agreement	Positive	-0.6%	Exclusive derivatives licensing deal with Morningstar on key U.S. equity indexes.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

CME’s product expansion announcements often see muted or negative next-day moves, while leadership changes have drawn a more clearly negative reaction.

Key Terms

financially-settled, futures and options, otc markets, central counterparty clearing

4 terms

financially-settled financial

"The financially-settled 90% and 50% Lean Beef Trim futures and options contracts"

Financially-settled means a transaction or contract is completed by paying or receiving cash rather than delivering the underlying asset (like shares, commodities, or equipment). For investors this matters because you receive or pay the value difference in money, which simplifies logistics and can reduce storage or transfer issues, but still carries market and counterparty risk tied to the asset’s price movement—think settling a bet with cash instead of handing over the item wagered.

futures and options financial

"The financially-settled 90% and 50% Lean Beef Trim futures and options contracts"

Futures and options are standardized contracts traded on exchanges that let investors lock in or gain the right to trade an asset at a set price on or before a future date. A futures contract is like agreeing today to buy or sell something later at a fixed price, while an option is like buying a reservation that gives you the right, but not the obligation, to make that trade. Investors use them to protect against price swings, make directional bets with less upfront cash, and help discover market expectations.

otc markets financial

"trade futures, options, cash and OTC markets, optimize portfolios, and analyze data"

Over-the-counter (OTC) markets are trading venues where buyers and sellers deal directly through dealers or electronic networks instead of on a formal exchange; think of a neighborhood flea market versus a supermarket. They matter to investors because OTC-listed stocks often represent smaller or international companies with fewer reporting requirements, which can mean lower liquidity, wider price swings and higher risk but sometimes earlier access to growth opportunities.

View in glossary

central counterparty clearing financial

"it operates one of the world's leading central counterparty clearing providers, CME Clearing"

A central counterparty clearing (CCP) is a specialized financial intermediary that sits between buyers and sellers of securities or derivatives, becoming the buyer to every seller and the seller to every buyer to guarantee trades are completed. Like an insurance-backed referee, it manages the risk of someone failing to pay by requiring collateral, pooling resources, and simplifying many trades into smaller net payments, which helps investors by lowering the chance of loss from a counterparty default and improving market stability and liquidity.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

CHICAGO, June 30, 2026 /PRNewswire/ -- CME Group, the world's leading derivatives marketplace, today announced plans to launch two types of Beef Trim contracts, which will 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. "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 & 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. For more information on these products, please visit https://www.cmegroup.com/markets/agriculture/lean-beef-trim-futures-and-options. 

As the world's leading derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest rates, equity indexes, foreign exchange, cryptocurrencies, energy, agricultural products and metals.  The company offers futures and options on futures trading through the CME Globex platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform.  In addition, it operates one of the world's leading central counterparty clearing providers, CME Clearing. 

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc.  CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc.  NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc.  COMEX is a trademark of Commodity Exchange, Inc. BrokerTec is a trademark of BrokerTec Americas LLC and EBS is a trademark of EBS Group LTD. The S&P 500 Index is a product of S&P Dow Jones Indices LLC ("S&P DJI"). "S&P®", "S&P 500®", "SPY®", "SPX®", US 500 and The 500 are trademarks of Standard & Poor's Financial Services LLC; Dow Jones®, DJIA® and Dow Jones Industrial Average are service and/or trademarks of Dow Jones Trademark Holdings LLC. These trademarks have been licensed for use by Chicago Mercantile Exchange Inc. Futures contracts based on the S&P 500 Index are not sponsored, endorsed, marketed, or promoted by S&P DJI, and S&P DJI makes no representation regarding the advisability of investing in such products. All other trademarks are the property of their respective owners. 

CME-G

 

View original content:https://www.prnewswire.com/news-releases/cme-group-to-launch-beef-trim-contracts-to-manage-risk-across-the-cattle-supply-chain-302814179.html

SOURCE CME Group

FAQ

What new beef trim futures is CME Group (CME) launching in July 2026?

CME Group plans to launch financially settled 90% and 50% Lean Beef Trim futures and options on July 20, 2026, pending regulatory review. According to CME Group, these contracts track products used to produce high-volume ground beef and target the final stage of cattle marketing.

How do CME Group's new Beef Trim contracts help manage cattle supply chain risk for CME?

The new Beef Trim contracts are designed to help market participants manage beef trim price risk directly. According to CME Group, they bridge the gap between live cattle prices and ground beef, allowing producers, packers, processors, and end users to hedge input costs linked to retail blend ratios.

When will CME (CME Group) Beef Trim futures and options start trading?

Trading in the 90% and 50% Lean Beef Trim futures and options is expected to start on July 20, 2026, pending regulatory review. According to CME Group, the contracts will be listed and subject to the rules of CME once approvals are complete.

What are the lean percentages for CME Group's new 90% and 50% Beef Trim contracts (CME)?

The 90% and 50% Lean Beef Trim contracts reference beef trim lean percentages relative to fat content. According to CME Group, these specifications align with physical market products used for high-volume ground beef, helping participants hedge around popular retail lean-to-fat blend ratios.

What were CME Group's agricultural average daily volumes before the Beef Trim launch?

CME Group reports record 2025 average daily volume of 1.9 million agricultural contracts. According to CME Group, Live Cattle futures and options reached record ADV of 111,718 and Feeder Cattle futures and options reached record ADV of 31,545 contracts in the same period.

Who might use CME Group (CME) Beef Trim futures and options for hedging?

The contracts are aimed at packers, processors, and end users needing to hedge beef trim prices. According to CME Group and industry commentary, these users can manage exposure to volatile trim markets and improve price discovery for ground beef inputs across the supply chain.