why pork belly future's open interest so low ?

Discussion in 'Ag Futures' started by tzheng, Jul 7, 2010.

  1. tzheng

    tzheng

    Why pork belly future's open interest so low ? I use Bloomberg data. For example, PB future expiring Aug 2010, has only 30 open interest. In and before 2008, the front month OI is in 1000s, even 2009 has a few 100s open interest at its peak. Now only 30 ? !

    Any one knows why ? thank you !
     
  2. 1) Speculators lost interest in the contract because commercial operators developed other ways to hedge outside of the CME. :(
    2) It'll really be a sad day if the contract is delisted. :mad:
     
  3. Just curious what type of hedge do they use now?
     
  4. I noticed the ultra low interest too. I used to trade that market on ocassion years ago, back then it was thin, now it's just a shell.

    I was wondering what happened too.
     
  5. LeeD

    LeeD

    Perhaps, old-fashioned way... a long-term contract fopr regular meat with farmers. Also live hog futures are a decenty hedge too.
     
  6. OTC shizzz
     
  7. 10 years ago there were only 2 traders in the Belly PIT and 1 of the guys was pretty big. Now do they only have 1?
     
  8. caroy

    caroy

    I hope the one didn't eat the other.