Monday, September 18, 1961: Pork belly futures

The Chicago Mercantile Exchange begins trading pork belly futures.

From a 1991 article by The Associated Press: "A pork belly futures contract is an obligation to deliver or take delivery of 40,000 pounds of frozen bellies on a future date at a specified price."

From a 2010 article in The Wall Street Journal: "The pork belly, a slab of frozen meat from which bacon is cut ... earned the exchange the nickname 'The House That Bellies Built.' ... The contract started ... as a way for meat packers and food companies to manage their price risk of bacon. Pork bellies were frozen and stored away in winter, and then thawed out in the summer to accommodate the annual summer increase in demand for bacon as the nation munched through millions of bacon, lettuce and tomato sandwiches. The seasonal pattern gave rise to the need for producers to hedge against price fluctuations."

Photo from Chicago Tribune, 1967.

* "History of the Chicago Mercantile Exchange" (from 1970): @

* Timeline: @

* "The Ode: Pork Belly Futures (1961-2011)" (from canadianbusiness.com): @

* Trade in Pork Bellies Comes to an End, but the Lore Lives" (New York Times, July 2011): @

* "End of an Era: R.I.P. Pork Belly Futures" (July 2011): @

* CNBC video (2010): @

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