CME Fresh Bacon Index

The CME Fresh Bacon Index is a weekly weighted average of the prices for fresh, derind bellies in the weight categories of 7-9, 9-13, 13-17, and 17-19 pounds.

Data are collected by the U.S. Department of Agriculture (USDA) and published in its “National Weekly Pork Report FOB Plant – Negotiated Sales” (LM_PK610) and its “National Weekly Pork Report FOB Plant – Formula Sales” (LM_PK620).

The USDA also publishes prices for fresh, derind bellies daily in its “National Daily Pork Report FOB Plant – Negotiated Sales – Afternoon” (LM_PK602). While that report is an important daily reference, it is not used in the calculation of the CME Fresh Bacon Index.

To calculate the index price, the weekly number of pounds is multiplied by the weekly price in each weight category from both the LM_PK610 and LM_PK620. Those results are summed to determine the total weekly value. The weights from each category from both reports are summed to determine the total weekly weight.

To determine the CME Fresh Bacon Index value, divide the total weekly value by the total weekly weight. The result is a weekly weighted average of fresh, derind bellies quoted in cents per pound.