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Contract History If
you are interested in trading Pork Bellies futures it is helpful to become familiar with the history of the Pork Bellies market.
Pork bellies are mainly used for bacon and can be frozen and stored for up to a year prior to processing. CME® Frozen Pork Belly futures began trading in 1961 – the first futures contract
based on frozen, stored meats. Trading in CME Frozen Pork Bellies contracts was developed as a risk management device to meet
the needs of meat packers and inventory owners who had to contend with volatile hog price swings. CME Frozen Pork Bellies
futures contracts perform the same two primary functions common to many futures contracts – that of guiding inventories
and establishing forward pricing. Historically, wide price swings are not
unusual in pork belly futures, which in recent years have been accentuated by curtailed speculative interest towards the market.
In either case, futures are more likely to respond to supply considerations, real or perceived, than to demand factors, which
are more often difficult to ascertain.
CME Livestock Futures and Options
Click on the link above to
download a very informative .pdf brochure entitled "CME Livestock Futures and Options.” It was published by the Chicago
Mercantile Exchange. This is a must read guide for any speculator or hedger considering a trade in the pork bellies market
using exchange traded pork bellies futures and options.
Click here
to contact a commodities broker with experience in the pork bellies market.
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