economics

December 28, 2010

Pork Bellies Now ‘Nontrading Places’ Activity Grinds to a Near-Halt at Chicago Merc; ‘There’s Nobody Down There’

Filed under: Uncategorized — ktetaichinh @ 2:22 am
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This year, spot prices have soared 45% from June to an all-time high of $1.60 a pound in September, before tumbling back to a low of 88 cents by late October. Now they fetch around 96 cents. “It’s getting completely out of whack,” said Chris Kunzler, president of Kunzler & Co., a Lancaster, Pa., bacon processor.

The CME’s lean-hogs contract is more actively traded. But belly prices sometimes differ from hog prices, meaning traders can’t use the two interchangeably.

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