Pork Bellies

AAA

DEFINITION of 'Pork Bellies'

A cut of pork that comes from the belly of a pig. Pork bellies were traded in the futures market, as they are important components of meat products, such as bacon. Trading in pork bellies futures began in 1961 on the Chicago Mercantile Exchange (CME), and allowed meat packers to hedge the volatile pig market.

INVESTOPEDIA EXPLAINS 'Pork Bellies'

Pork bellies became the iconic commodity for the futures market's representation in popular culture, and has been mentioned in a variety of films relating to investing, such as "Trading Places". While they were a major future traded for decades, their waning popularity in trading led to the CME to halting trading in 2011.

RELATED TERMS
  1. Cash Commodity

    In futures trading, the cash commodity is delivered for payments. ...
  2. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  3. Feed Ratio

    The relationship between the price for which a unit of livestock ...
  4. Gross Processing Margin - GPM

    The difference between the cost of a raw commodity and the income ...
  5. Futures Contract

    A contractual agreement, generally made on the trading floor ...
  6. Split Close

    A situation that refers to price differences within a series ...
Related Articles
  1. Active Trading

    Take A Tour Of The Futures Trading Pit

    Discover why controlled chaos can mean an exciting investment experience for you.
  2. Active Trading

    Learn To Corral The Meat Markets

    Find out how to trade these hog-wild commodities.
  3. Investing

    Who sets the price of commodities?

    Commodities are extremely important as they are essential factors in the production of other goods. A wide of array of commodities exist, including coffee, wheat, barley, gold and oil. Even orange ...
  4. Chart Advisor

    Cocoa Prices Setting Up For A Move Lower

    Cocoa prices have been trending lower over the past several months and the recent bearish crossover between the 50-day and 200-day moving averages suggest that the long-term downtrend is gaining ...
  5. Options & Futures

    What are the differences between divergence and convergence?

    Find out what technical analysts mean when they talk about a market experiencing divergence or convergence and how they affect trading strategies.
  6. Options & Futures

    Futures Quotes Explained The "Easy" Way

    If there’s a security whose price fluctuates, there can theoretically be a futures marketplace for it.
  7. A commodity is a basic good used in commerce.
    Markets

    What are Commodities?

    A commodity is a basic good used in commerce that is interchangeable with other commodities of the same type. Commonly traded commodities include gold, beef, oil, lumber and natural gas. Additional ...
  8. Options & Futures

    Why is the Accumulative Swing Index helpful for traders and/or investors?

    Find out why J. Welles Wilder believed that the accumulative swing index could be used in the futures markets to indicate long-term trends.
  9. Options & Futures

    Stock Futures vs Stock Options

    A full analysis of when is it better to trade stock futures vs when is it better to trade options on a particular stock. A quick overview of how each of them works and why would a trader, investor, ...
  10. Options & Futures

    The Potential Of Low-Priced Options

    The benefits of trading low-priced options, and learning how to pinpoint them, can be a very profitable strategy for an options trader.

You May Also Like

Hot Definitions
  1. Deferred Revenue

    Advance payments or unearned revenue, recorded on the recipient's balance sheet as a liability, until the services have been ...
  2. Multinational Corporation - MNC

    A corporation that has its facilities and other assets in at least one country other than its home country. Such companies ...
  3. SWOT Analysis

    A tool that identifies the strengths, weaknesses, opportunities and threats of an organization. Specifically, SWOT is a basic, ...
  4. Simple Interest

    A quick method of calculating the interest charge on a loan. Simple interest is determined by multiplying the interest rate ...
  5. Special Administrative Region - SAR

    Unique geographical areas with a high degree of autonomy set up by the People's Republic of China. The Special Administrative ...
  6. Annual Percentage Rate - APR

    The annual rate that is charged for borrowing (or made by investing), expressed as a single percentage number that represents ...
Trading Center