A Forward Pricing Contract is a firm agreement between the producer and the Marketing Division for delivery/receipt of an agreed number of hogs in a specific month to be priced at a contract price with a basis adjustment to be applied on date of delivery.
The “Standard” Forward Pricing program incorporates Chicago Mercantile Exchange (CME) Lean Hog futures prices and Canadian Dollar futures prices to build an Ontario constructed futures price. Producers settle Standard Forward Pricing contracts when their hogs are delivered to market.
The “Lean Hog Only” Forward Pricing program allows producers to lift contracts at any time and do not involve a currency hedge. Target Pricing agreements allow producers to make a forward contract as soon as prices meet or exceed a selected level.
On each business day that trading is open, forward contracts can be made by contacting the Marketing Division from 10:30 AM - 1:20 PM at 1-800-862-9001.
Standard Forward Pricing Detailer
Lean Hog Only Detailer