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 !
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.
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.
Perhaps, old-fashioned way... a long-term contract fopr regular meat with farmers. Also live hog futures are a decenty hedge too.
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?