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Veteran Advisor

Gone Belly Up

On Friday, the CME Group ended its oldest futures contract.....the frozen pork bellies contract. After volume fell to just a handful of contracts per month, the frozen pork bellies futures and options have been delisted.

 

Anybody have any memories of frozen pork bellies trading? It's been around a long, long time. Surely somebody has a euology in them.

 

 

And, you ask the question, now what will happen?


Mike

 

 

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5 Replies
Senior Contributor

Re: Gone Belly Up

I'm not too knowledgeable about the kinds of CME contracts. Does the pork industry have other contracts than Lean Pork ones?

 

Eulogy:

Markets change, so we must change with them.

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Highlighted
Advisor

Re: Gone Belly Up

A predictable function of captive supply. 

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Senior Advisor

Re: Gone Belly Up

Yes sir. One time I was long one contract of pork bellies and it was limit down for 3 days in a row. I was able to go short on one contract a few months out to offset it. Then I had two contracts one long and one short and they both went the wrong direction for me. I think that was my last venture into pork bellies.

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Veteran Advisor

Re: Gone Belly Up

kraft-t,

 

I'm sure there are a lot of similar stories out there.

 

Mike

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Veteran Advisor

Re: Gone Belly Up

 Good point Bruce---and now we see how ""cheap"" the hog market is ---big is never a price pressure driver for very long ---to big to fail isn't either-----

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