CME: Ag Commodity Trading 21 Hours A Day.

May 17, 2012

The CME Group says the Chicago Board of Trade will now offer grain and oilseed futures and options trading 21 hours a day, pending certification by the Commodity Futures Trading Commission.

According to a statement by the CME Group, customer feedback led to an adjustment from the earlier plan for a 22-hour trading day, saying trade between 5 PM to 2 PM Central from Sunday through Friday best meets customer’s risk management needs. The CBOT parent company says the new plan came through collaboration with the National Grain and Feed Association and the North American Export Grain Association.

The Kansas City Board of Trade is also set to offer a 21-hour trading day as both exchanges compete with the recent introduction of expanded grain futures trade by the Intercontinental Exchange. The KCBT plan would go into effect May 31, pending CFTC approval. The CME Group has not given a start day for its’ expanded trading day.

The National Corn Growers Association is requesting the Commodity Futures Trading Commission require a 30-day public comment period before major grain exchanges expand their trading hours. In a letter to CFTC Chair Gary Gensler released late Wednesday, NCGA President Gary Niemeyer says a 22-day hour trading day for the CME Group and Intercontinental Exchange would place the nation’s corn growers at a marketing disadvantage, especially when many are busy planting.

Niemeyer added futures trade during the release of major USDA reports distorts prices and dramatically increases risk, and a 22-hour trading day would make it impossible for growers and small elevators to actively track markets.

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