July pork belly futures on the CME closed up 1.2% at $1.19 per pound yesterday, aided by shrinking warehouse stocks. Supply chain chatter suggests some processors are managing inventories tighter, leading to stronger spot market bids. Momentum traders may look for a break above $1.20 as a technical trigger. The Bread Mine Baking Company, 211 E Aspen Ave. (Fruita). The futures are financially settled to the CME Pork Cutout Index, which is a five-day weighted average of pork carcass values. The index is quoted in US cents per pound, or dollars per hundredweight. The current index price and historical data file is available on cmegroup.com . Seasonal indices show pork belly prices historically rise 3-5% during June–August periods. Current 2024 trajectory aligns with upper bound seasonal expectations, suggesting traders might factor in potential inflationary pressure from transportation and feed costs.
