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We're not talking about a new abdominal workout here; in this section we're all about buying and selling pork bellies and lean hogs!

First and foremost, it is best that you understand exactly what it is you're trading:

pork bellies:

1. trade 40,000 lbs of frozen cut-and-trimmed pork per contract.
2. have a minimum "tick" size of 2.5¢ per hundredweight, or $10.00.
3. trade on the floor from 9:05am to 1:00pm Central.
4. have contracts in the months of February, March, May, July, and August.

lean hogs:

5. trade 40,000 lbs of lean hog carcasses per contract.
6. have a minimum "tick" size of 2.5¢ per hundredweight, or $10.00.
7. trade on the floor from 9:05am to 1:00pm Central.
8. have contracts in the months of February, April, May, June, July, August, October, and December.

It is important to understand the above information when trading as it is all fundamental; no one wants to be embarrassed!

Trading pork bellies and lean hogs - apart from the fact that they are separate markets with individual specifications - is not too different from trading anything else. Many markets have basic trading seasons in which certain products are produced and/or sold in higher quantities than in other times of the year. While it may seem simple to follow this seasonal trend, it is not quite as simple as buying during one point of the year and selling during another. Certain reports that come out (for pork bellies and lean hogs, a very important report is Hogs and Pigs, as distributed by the USDA quarterly) may provide critical information that may help you with your decision-making when the time comes to trade. Most importantly, never feel rushed; just because a news headline informed you that there was a small outbreak of disease among hogs in China or that pig production in the Midwest is slowing, there is no reason to act hastily. Always do your due diligence by checking and double-checking everything you see and hear!

As for when you should trade and what you should look out for, registering for our FREE report, 6 Things You Need to Know About Hogs is a great way to get started trading!