CME Group Announces New Ag Index

The CME Group recently announced the launch of its global price benchmark, called the Agriculture Index. John Ricci, managing director and global head of agricultural products for the CME Group, said CME Group is the world’s number one derivatives marketplace.

“Our roots are in agriculture. We started in 1848 as the first futures exchange in the United States, offering farmers a chance to hedge their grain prices," Ricci said. "Nearly two centuries later, our futures and option products help market participants manage risk and pursue opportunities as economic conditions fluctuate. And while our business has certainly evolved over the years, we remain steadfast in our commitment to listening to our clients' needs and risks, and how we can best support them on their journey.”

This Will Provide A Comprehensive View

He talked about the new Agricultural Index and why it’s something the marketplace needs.

“The CME Group Agricultural Index is a price benchmark that provides a comprehensive view of the agricultural economy. It measures five sectors that are fundamental to the global farm economy: grains, oilseeds, livestock, dairy, and lumber. By aggregating the futures prices across these five sectors in a single index, producers, traders, and analysts have a more complete read on the state of the farm economy and where it's headed.”

This Looks To Provide A True Picture of Commodity Costs

So, how will the Agriculture Index operate?

“The index is built to ensure an accurate reflection of real-world market liquidity, tracking CME Group’s Global AGs futures," Ricci said. "The index starts with a solid foundation, a set of selection and eligibility criteria that ensures only the most relevant markets make the cut, so think corn, soybeans, wheat, and livestock. From there, methodology works to give a true picture of commodity costs. It smooths out the price differences between futures delivery months, then it applies weightings across sectors, so no single market skews the overall representation within the index.

“The CME Group Agricultural Index is built for market participants who want transparency into the pulse of the global farm economy," he continued. "Whether you're an institutional investor, an agricultural producer, or a macro analyst, you can rely on our data to help navigate global supply chains. It gives you a clear window into the farm economy, so you can spot structural demand shifts before they catch you off guard – from the growing influence of energy and biofuels to the way consumer preferences are quietly reshaping what gets grown and traded."

CME Rolling Out Several New Offerings

Ricci noted this is just one of several new products from the CME Group.

"It was just last week that we launched two new types of beef trim futures and options: a 90% lean beef trim and a 50% lean beef trim," Ricci said. "Think of them as the burger contracts. These contracts help the agricultural industry manage price risk across the whole cattle supply chain. The 90s and the 50s beef trims are complementary components utilized to produce ground beef, so processors blend them to reach lean-to-fat ratios, such as the common 80-20 retail hamburger specification. These contracts complement our existing live cattle and feeder cattle futures by providing a risk management solution at the tail end of the value chain. These are financially settled futures and options. First trade date will be July 20, 2026, pending regulatory approval.”

Learn more by visiting CME's Website.

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