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Pork Bellies Futures and Options Education
Pork Bellies futures and options quick facts:
Chicago Mercantile Exchange (CME) began trading
Frozen Pork Belly futures
in 1961 - the first futures contract based on frozen, stored
meats. Trading in Frozen Pork Bellies futures contracts were
developed as a risk management device to meet the needs of
meat packers who processed pork and had to contend with
volatile hog prices as well as price risks on processed
products held in inventory.
Thus, the pork belly futures
contract was designed to help processors and warehouse
operators manage these price risks. Hence, the Frozen Pork
Bellies futures contracts perform the same two primary
functions common to many futures contracts. Those functions
include guiding inventories and establishing forward
pricing. The CME's pork belly
future contract has enjoyed
continued growth in volume and liquidity over the years to
become one of the premiere meat futures contracts traded
today.
Pork Belly Futures and Pork
Belly Options
Contract Specifications
Trading
Unit
Frozen Pork Belly Futures: 40,000
pounds of frozen pork bellies cut and trimmed
Frozen Pork Bellies Options: One
Frozen Pork Belly Futures Contract
Fresh Belly Options: One Fresh Pork
Belly Futures Contract
Pork Cutout Futures: 40,000 lbs times
Pork Cutout Index
Pork Cutout Options: One Pork Cutout
Futures Contract
Trading
Hours
Frozen Pork Belly Futures: 9:10 a.m.
to 1:00 p.m. LTD (12:00pm)
Frozen Pork Belly Options: 9:10a.m. To
1:02 p.m. LTD (1:00pm)
Fresh Belly Options: Monday/Friday
7:00 a.m. - 1:02 p.m.
Pork Cutout Futures: Monday/Friday
7:00 a.m. - 1:10 p.m.
Pork Cutout Options: Monday/Friday
7:00 a.m. - 1:12 p.m.
Trading
Months
Frozen Pork Belly futures trade Feb.,
Mar., May, July, August.
Point
Description
Frozen Pork Belly Futures and Options:
1 point = $.0001 per pound = $4.00
Fresh Belly Options: 1 point = $.0001
per hundred weight = $4.00
Pork Cutout Futures: 1 point = $0.01
index points = $4.00
Pork Cutout Options: 1 point = $.0001
per index points = $4.00
Contract
Listings
Frozen Pork Belly Futures: Five months
of February, March, May, July, and August.
Frozen Pork Belly Options: Eight
months of February, March, May, July, and August, and Flex
Options.
Fresh Belly Options: Two month of January, March, May, July,
August, September, November and Flex Options.
Pork Cutout Futures: Four months in a
monthly cycle
Pork Cutout Options: Two months on a
monthly cycle
Limits
Frozen Pork Belly Futures: $0.03/lb,
300 points, Expandable price limits see Rule 8302
Pork Cutout Futures: $0.02/lb See Rule
9702.D
Pork
Cutout Options: $0.02/lb
Minimum
Price Fluctuation
Frozen Pork Belly Futures: 0.00025 =
$10.00 Frozen Pork Belly Options: 0.00025 = $10.00 Regular,
0.000125 = $5.00 Cab Fresh Belly Options: 0.00025 = $10.00
Regular, 0.000125 = $5.00 Cab
Trading Symbol
PB
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