Commodity Products Commodity Products is one of the indicators of the economic climate and the index can vary depending on diverse factors like economy,
government policy and natural disasters. Commodities for trading are Lean Hog futures, GOLD futures,

Lean Hog futures

Lean hog is a kind of transaction appointed to sell or purchase at a certain point of time (last trading day) in future at a representative pork price, which is fixed at this point in time (on the contract date) to avoid the fluctuation risk. Lean hogs listed on the Korea Securities and Futures Exchange are settled in cash and a contract terminates by exchanging differences at the final settlement price (representative pork price announced at 10:00 A.M. the next day after the last trading day), instead of exchanging pork carcass on the final settlement day (last trading day+2 days). On the other hand, according to the law, the Exchange is an involved party to perform settlement, as a purchaser for members to sell and as a seller for members to purchase, for the guarantee of settlement, although not involved in a contract of future trading. Accordingly, investors can take part in trading at ease with no need of identifying credit ratings of counterparties.

Specification

Lean Hog futures
Underlying Asset Lean Hog Index calculated by Animal Products Grading Service
Contract Size 1,000 kg
Contract Months The six consecutive near months
Price Quotation KRW per kilogram
Minimum Price Change KRW 5
Value of Minimum Pri KRW 5,000 (5 X Multiplier 1000)
Last Trading Day Third Wednesday of the contract month
First Trading Day First business day after the last trading day
Final Settlement day Last Trading Day(T)+2
Final Settlement Cash Settlement