Half and quarter contracts are also available. The amount depends on the number of contracts and the broker. Options are a newer method of forward pricing. An options contract is an insurance policy. Hedging locks in a future price.
Options lock in a minimum price.
Options contracts are handled similar to other futures contracts-through a broker. When selecting a selling point consider price, transportation, integrity of the market, and additional services. Hog markets vary greatly. Some offer forward pricing contracts where the producer agrees to deliver a specified number of hogs for a set price. These contracts are set several months in advance of the sale.