The frozen pork-bellies futures contract, a staple of Chicago’s commodity markets for a half century, was unceremoniously killed after traders abandoned it.
The Chicago Mercantile Exchange announced its demise in a terse notice. “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. said.
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.
CME was last year reportedly examining ways to revive the contract, including trades settled in cash rather than physical delivery.