Electronic trading the pits, traders say

Electronic trading of grains is now dominating markets that not long ago were the last bastion of arm-waving, shouting pit brokers, but the easy access to prices and speed has come at a price – wild market swings and lack of trust that is driving away users. The focus of the controversy on the Chicago

U. S. House panel to monitor CDS clearinghouse pace

Futures exchanges from Chicago and New York will be asked to report in early December on their progress in forming clearinghouses to stabilize credit default swaps, a U. S. House of Representatives committee chairman said recently. The clearinghouses are regarded by U. S. regulators as a way to restore liquidity to the swaps market and


Crisis remakes the commodity business

Only the brave or the foolish would make predictions about the future amid the biggest market upheaval in three generations. But it is already clear the crisis is profoundly reshaping the commodity trading industry. The mix of intermediaries, customers and financial resources are all being substantially redrawn. So here are some tentative thoughts on how

U. S. grain group asks forced loadout of CBOT wheat

The National Grain and Feed Association (NGFA) has asked the Chicago Board of Trade to consider forcing buyers of CBOT wheat contracts to take physical delivery of grain in some instances in order to bring the contract and cash grain markets back in sync. The NGFA, the largest industry group of grain buyers and handlers,


Fertilizer prices breach line of support

The news is always the most bullish at the top. In the last month or two we have all heard the news about higher fertilizer prices. Let’s take a look at this market from both a technical and fundamental perspective now that world fertilizer prices are easing. You may not be aware, but it is

MGE converts to electronic platform

After more than 125 years, open-outcry trade in wheat futures at the Minneapolis Grain Exchange will cease Dec. 19 when the exchange goes fully electronic, the exchange said Oct. 24. The exchange’s board of directors unanimously approved the move, pending approval by ownership in a ballot next month. Hard Red Spring wheat futures, launched in


ICE delists feed wheat

Having reviewed its alternatives, ICE Futures Canada has delisted its feed wheat contract effective Oct. 16, the last delivery day of the October 2008 contract. The Winnipeg commodity exchange pulled its December 2008 and subsequent feed wheat futures contract months from trading in May, pending a review by a feed wheat subcommittee of its board

Funds see food staple prices weathering storm

Agricultural commodity prices are likely to fall in the short term as investment funds exit the market but should recover eventually in line with their fundamentals, fund managers told a conference Oct. 7. Asked what impact the financial crisis would have on staple food commodities such as sugar, wheat and coffee, Chris Armitage, managing director


V-Tops cap rallies

V-Tops are one of the most difficult chart patterns to analyze because of the suddenness in which they form. A V-Top indicates a trend reversal, with dynamic and substantial price drops often occurring with the formation of this pattern. V-Tops have three essential components: 1) Prices must be in an uptrend, with a near vertical