From the Chicago Tribune:
The Chicago Mercantile Exchange said it is shutting down its iconic frozen pork belly futures market at the end of business on Friday.
The contract for a slab of frozen meat from which bacon is cut started trading in 1961 and as of Friday was the oldest existing CME livestock futures contract.The closing had been expected. Trading in pork belly futures had dropped to nearly zero in recent years after the meat industry became integrated and used fresh pork bellies instead of frozen ones to make bacon.
. . .
Pork bellies had their heyday in the late 1960s and 1970s, when they were the CME's most popular agriculture contract.
And from the FT:
“Because of a prolonged lack of trading volume and after significant discussion with industry participants, CME will be delisting frozen pork bellies futures and options” effective Monday, exchange parent CME Group said in a report to traders.
Pork bellies, used to make bacon, were once an anchor product at the CME. Launched in 1961, the contracts were used by slaughterhouses and food companies hedging price risks and speculators taking a punt on price direction.
As bellies futures predated the creation of financial futures, some traders also used them to protect against macroeconomic risks, said John Lothian, president of the electronic trading division at brokers Price Futures Group in Chicago.
“In the early 1970s, there were people that used pork bellies as an inflation hedge,” Mr Lothian said.
... don't forget the other movie that prominently featured pork bellies (and their price) - "For Pete's Sake", starring Barbara Streisand http://youtu.be/AnWTGf6GpzQ
Posted by: Jeff Yates | July 16, 2011 at 04:26 PM
You know what, Jeff? I've never seen that one. I know what to add to the Netflix queue now.
Posted by: Kim Krawiec | July 16, 2011 at 06:47 PM
Actually, I saw it on late night tv when I was 13 so it may or may not be any good - I dont remember - I just remember that she invests their money in pork bellies ;-)
Posted by: Jeff Yates | July 16, 2011 at 07:42 PM