What is the actual swine price?
For months in which a CME lean hog futures contract expires, the actual swine price is the simple average of the daily settlement prices in the last three trading days prior to the contract expiration date for the CME lean hog futures contracts plus the state-specific swine basis for that month. For other months the actual swine price is the simple average the daily settlement prices in the last three trading days prior to the contract expiration date of the lean hogs futures contracts that expire in the surrounding months. For example, the actual swine price in September is the simple average of the daily settlement prices in the last three trading days prior to the contract expiration date of the lean hog futures contracts that expire in August and October.
