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 Pork Belly Futures and Options Market Trading

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T & K Futures and Options, Inc. is a federally licensed U.S. corporation specializing in helping investors implement futures and options investment strategies. We are happy to answer all of your questions about  Pork Belly Futures and Options. Click here for answers to your questions.

Chicago Mercantile Exchange (CME) began trading Frozen Pork Belly futures in 1961 - the first futures contract based on frozen, stored meats. A hog has two belly slabs that usually weigh 8-18 pounds depending on the commercial slaughter weight which usually averages about 255 pounds and the dressed carcass averages about 190 pounds. This is the cut of meat from a hog where bacon comes from.

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. Pork bellies can be frozen and stored for up to one year before processing. Movement of pork bellies into cold storage usually peaks by mid-year going into the Summer grilling season.

Pork Belly Futures and Options Quick Facts

  • 40,000 pound contract size

  • one cent move equals $400

  • trades Feb., Mar., May, July, Aug.

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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. Learn More >>>

Contact us at contact@tkfutures.com   for specific pork belly future and pork belly option data or click here now open an account to open your account today.

 
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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: 9:05 a.m. to 1:00 p.m. LTD (12:00pm) Central Time
Frozen Pork Belly Options: 9:05 a.m. to 1:02 p.m. LTD (1:00pm) Central Time
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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To see other meat futures visit lean hog futures, live cattle futures and feeder cattle futures.

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The information presented in this commodity futures and options site is not investment advice and is for informational purposes only. Investments in commodity futures and options involves a high degree of risk, your investment may fall as well as rise, you may lose all your original investment and you may also have to pay more than the original amount invested. Consult your broker or advisor prior to making any investment decisions. Past or simulated performance is not a guide to future performance. Futures Trading is not suitable for everyone. This site provides information on online commodity trading, online future trading, commodity future online trading, commodity options, futures trading commodity brokerage.