why pork belly future's open interest so low ?

T

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 !
 
Quote from tzheng:
Why pork belly futures open interest is so low?
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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:
 
Quote from nazzdack:

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:
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Just curious what type of hedge do they use now?
 
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.
 
Quote from inks2002:

Just curious what type of hedge do they use now?
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Perhaps, old-fashioned way... a long-term contract fopr regular meat with farmers. Also live hog futures are a decenty hedge too.
 
Quote from dafeeder:

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?
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I hope the one didn't eat the other.
 
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