CME Launches Fresh Bacon Index

Posted on 05/14/2019 10:21 AM

In an attempt to provide a transparent price reference for pork bellies at a time where consumer demand for bacon and market volatility is high, CME Group announced it has started publishing a CME fresh bacon index this week.

Pork bellies are one of the most volatile of the pork primal cuts, with volatility peaking at more than 40% in 2018. CME says, “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 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.

You can find more information about the index here.

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