The CME Group is now publishing a new Boxed Beef Index to provide the industry with better price discovery. CME Group managing director Tim Andriesen says the index reflects a daily, weighted average price of beef cuts and is based on data readily available by USDA. “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.” This new tool was created because there is more attention today on the beef supply chain and managing risks in the market. “We hope that this new pricing reference will help inform the decisions of beef producers and end users, especially as we head into the grilling season while dining out and gathering with friends and families remains unclear with COVID-19,” says Andriesen. “However, it is also important to clarify that this is a free pricing tool for market participants, its not a tradeable product, do not have a futures contract, it is intended to be a monitoring tool to help users make informed risk management decisions.”
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