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Bellies - A dying market
Posted: Tue Jan 04, 2011 3:45 pm
by zacharyoxman
From MFG today:
Subject: Pork Belly Futures
To:
Date: Tuesday, January 4, 2011, 11:59 AM
Due to a lack of open interest MF Global will no longer offer Pork Belly Futures on MF Xpress or MTRADE. All client executions for this contract should be directed to the MF Global Order Desk 312-548-7800.
Posted: Tue Jan 04, 2011 4:16 pm
by RedRock
end of an era
Posted: Thu Jan 06, 2011 2:26 am
by Chris67
OR time to add it to your portfolio and look for the best trend of 2011 ?
C
Posted: Thu Jan 06, 2011 3:29 am
by RedRock
Chris67 wrote:OR time to add it to your portfolio and look for the best trend of 2011 ?
C
Didn't Hillary make a killing in Bellies once upon a time? Oh thats it, she wasn't aware her account was doing so well. Wasn't the trade put on (on her behalf by one of the o'll Merc boys) just before a gargantuan move. What luck.
Posted: Thu Jan 06, 2011 10:23 am
by MarkS
Chris67 wrote:OR time to add it to your portfolio and look for the best trend of 2011 ?
C
No chance. Read the Wall Street Journal story from a week or two ago. Some days there is zero volume. The day of the article, six contracts traded. Might be the best trend ever, but you'll be in for a 1-lot...
Article says bacon used to be used mostly in spring and summer for BLT sandwiches. Pork bellies were frozen and then stored -- hence the need to protect against price risk between slaughter and usage. Now bacon is consumed year-round at home and in fast-food (bacon burgers for example). So no real need to freeze bellies for the spring --> no need to hedge price risk.
Posted: Thu Jan 06, 2011 10:27 am
by LeviF
MarkS wrote:bacon used to be used mostly in spring and summer for BLT sandwiches.
This is the best explanation they could come up with? Lol.
Posted: Thu Jan 06, 2011 7:24 pm
by Moto moto
maybe a better explanation is that the pigs went on a diet and their bellies got smaller, leading to less slaughter as there was no demand for the fat free pork bellies.
Posted: Thu Jan 06, 2011 10:29 pm
by zacharyoxman
LeviF wrote:MarkS wrote:bacon used to be used mostly in spring and summer for BLT sandwiches.
This is the best explanation they could come up with? Lol.
I thought the same thing. Sometimes I sit back and realize just how fundamental the markets we trade are. BLT sandwiches in summer....wow.