Grain Swaps Offer Hedgers Brave New World

Ready or not, here they come. After years of planning, the Chicago Board of Trade has introduced a new hedging tool for the world grain industry that differs significantly from its century-old futures markets, but promises to take the risk management game to a new level – once everyone gets on board. “So far my

Australians Unhappy With CBOT, Launch Own Futures

Australia’s stock exchange operator, ASX Ltd., will launch a wheat export futures contract this summer, it said March 13, raising hopes for a new global reference price to complement the dominant U. S. market. ASX said it expected the contract to start trading in May. Australia liberalized overseas wheat sales last year, opening up the


Wheat Follows Wall Street Down

Weakness in the U. S. stock market has dragged wheat prices lower even as dry weather throughout the U. S. Plains this winter has threatened to severely damage this year’s crop. “I think that the stock market really does have a death grip not only on wheat, but a lot of the commodities,” said Joe

Trade Says Study Does Not End CBOT Wheat Flap

The U. S. grain industry says a study suggesting the Chicago Board of Trade’s beleaguered wheat futures contract has not been ruined by huge inflows of Wall Street money does not fix a contract it calls “broken.” The Nat ional Grain and Feed Association said a study issued last week by top agricultural consultant Informa


India Eyes First Wheat Exports In Six Years

India, the world’s second-biggest wheat producer, is likely to export the grain for the first time in six years after bumper harvests boosted stocks, a leading grains trader said Feb. 17. The country will harvest 76.5 million tonnes of wheat this year, just 1.6 per cent below official estimates, Vijay Iyengar, managing director of Singapore-based

CBOT’s New Limits On Non-Grain Players Approved

The Chicago Board of Trade (CBOT) on Feb. 13 received U. S. government approval to limit cash grain delivery instruments held by non-grain firms – its latest move to cool criticism about the performance its grain contracts. CBOT’s regulator, the Commodity Futures Trading Commission (CFTC), approved an amended Feb. 9 request to reduce the large


Pakistan May Export Flour On Surplus Wheat

Pakistan will likely produce more wheat from its bumper crop than a government target of 25 million tonnes this year, paving the way for more exports from South Asia which could further dent world prices. “There is no fear of any shortfall. It should meet our requirement, we should have some surplus,” Muhammad Saeed, chairman

Will A World Wheat Contract Replace CBOT Futures?

“The market is going to take care of itself, the banking system will be back in order, the risk management of the grain companies will be back in order, and everybody is not going to be terrified.” – GLENN HOLLANDER Is the grain industry ready for a world wheat futures contract? A year-long campaign to


Resurgent Grains May Stoke U. S. Food Prices

ANALYSIS BY SAM NELSON A resurgent U. S. grain market, stoked by drought in South America, spells more financial troubles for struggling meat producers and higher food prices for consumers already pinched by the recession. The worst drought in decades in Argentina, and in neighbouring Brazil, is helping to rally prices of corn and soybeans

U. S., Argentina set for corn export battle

“Our export estimations will probably have to be adjusted down, considering the effect that the drought is likely to have on production.” – Patricia Bergero, Rosario Grain Exchange The recent surge in U. S. corn sales could end soon as Argentina, the world’s second-largest exporter behind the United States, emerges with a new crop and