What is the expected swine price?
Expected swine prices for months in an insurance period are determined using three-day average settlement prices on CME lean hog futures contracts and a basis adjustment that varies by month and state. For swine months with unexpired futures contracts, the expected swine price is the simple average of the CME lean hog futures contract for that month over the three trading days prior to the last trading day in the month of the sales closing date expressed in dollars per hundredweight plus the state-specific swine basis for that month. For example, for a sales closing date of February 27, the expected swine price for July in Missouri equals the simple average of the daily settlement prices on the CME July lean hog futures contract over the three trading days prior to the last trading day in February plus the July Missouri swine basis. For swine months without a futures contract, the futures prices used to calculate the expected swine price are the weighted average of the futures prices u
