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.
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.
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.
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.