CHICAGO, May 13, 2019 /PRNewswire/ -- CME
Group, the world's leading and most diverse derivatives
marketplace, today announced it has begun publishing a new CME
Fresh Bacon Index to establish a transparent price reference for
fresh pork bellies used to make bacon. This new index comes amid
significant bacon price volatility driven by rapidly growing
consumer demand, global trade disputes and disease. Prices for pork
bellies are the most volatile of all the pork primal cuts, with
volatility peaking at over 40% in 2018.
"As consumer tastes have evolved, bacon is now in demand
year-round," said Fred Seamon, CME
Group Executive Director of Agricultural Research and Product
Development. "We believe our Fresh Bacon Index can become the
market-preferred bacon price reference. This new index will provide
greater price discovery for market participants who need
transparent bacon prices."
The new index will provide producers, packers, processors,
wholesalers, foodservice, retailers and others across the bacon
supply chain with a transparent weekly price to track supply
and demand dynamics of bacon transacted on the cash market. The
index establishes a weekly bacon price each Monday based on a
combination of negotiated and formula transactions, readily
available from the USDA. The CME Fresh Bacon Index price reflects
the value of one load (40,000 lbs.) of fresh, skinless pork bellies
in cents per pound.
The CME Fresh Bacon Index will complement CME Group's existing
risk management tools and reference index prices for pork and hog
industry participants, including Lean Hog futures and options, the
CME Lean Hog Index and the CME Pork Cutout Index.
For more information on the CME Fresh Bacon Index, please
visit www.cmegroup.com/baconindex.
As the world's leading and most diverse derivatives marketplace,
CME Group (www.cmegroup.com) enables clients to trade futures,
options, cash and OTC markets, optimize portfolios, and analyze
data – empowering market participants worldwide to efficiently
manage risk and capture opportunities. CME Group exchanges offer
the widest range of global benchmark products across all major
asset classes based on interest rates, equity
indexes, foreign exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex® platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the
world's leading central counterparty clearing providers, CME
Clearing. With a range of pre- and post-trade products
and services underpinning the entire lifecycle of a trade, CME
Group also offers optimization and reconciliation services through
TriOptima, and trade processing services through Traiana.
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CME-G
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SOURCE CME Group