While many people are familiar with the term "pork bellies" being used in some way with pork belly futures trading, not everyone is aware that the commodity actually does involve the belly of the pig.

Pork bellies, as the name implies, come from the underside of the pig or hog. Pigs actually have two stomachs that may weigh ten to eighteen pounds each. These bellies are usually cut into long thick sections, and are flash frozen. Once the pork bellies are frozen, they can be kept for quite a long time and still be used as a food source. There are a number of national cuisine types that utilize the pork belly after marinating and other preparation methods, among them American, Korean, and Chinese.

Pork belly futures have their origin with the Chicago Mercantile Exchange, and have been actively traded on the Exchange since 1961. Pork bellies future trading is based on the projections of current supply of frozen pork bellies versus the current rate of demand for the product. The current worth of pork belly future commodities rests in who wants them and how much of the product is considered desirable at the present time. Currently, the basic trading unit for pork bellies is twenty tons of trimmed and properly frozen belly portions and segments.

The value of pork bellies will rise, sometimes at a spectacular rate, when an increased market for bacon is perceived to be on the horizon. To a degree, the demand for pork bellies increases during seasons of the year when consumers are looking for lighter meat alternatives that are quicker to prepare and go not weigh one down during the activity of the warm weather months. The demand tends to decrease during colder months, when meats other than bacon may be considered preferable. That is one reason why reserves of pork bellies may be relatively low as the final quarter of the calendar years begins and there is a slight rise in the cost of what is left.

As the new years begins and production and freezing of pork bellies gears up to meet summer demands, the value of the commodity may reflect the change in inventory. There are those that routinely sell pork bellies when the prices is higher, then buy them back when the price dips based on supply and climate changes.

Speculation in pork bellies futures trading is considered to be a relatively stable component of an investment portfolio, as well as one that can yield a high profit if one has the vision to buy and sell at the proper times. As an ongoing renewable part of our food supply, this is one commodity that will be a good investment for many years to come.