Proposal to Extend Electronic Trading Hours Amended
In response to significant feedback from the grain industry - CME Group Managing Director of Agricultural Commodities and Alternative Investments Tim Andriesen says CBOT grain and oilseed trading hours are being further amended to 5 p.m. to 2 p.m. Central time Sunday through Friday. He says it's been communicated that these hours meet the risk management needs of this customer segment. An earlier proposal was for a 6 p.m. to 4 p.m. trading day. There was concern this would make it difficult and costly for grain companies to complete their end-of-day bookkeeping and back office functions. The revised hours are to go into effect no later than Sunday, June 3rd. It could be sooner if the CFTC grants a request for expedited approval. The Kansas City Boart of Trade has submitted a similar proposal that is set to become effective on May 31st.
Even with this change - National Farmers Union is asking CFTC to open a 30-day comment period. NFU President Roger Johnson says stakeholders in the grain and oilseeds markets need further opportunity to understand and provide input about the proposed changes. He says concerns have been voiced regarding the volatile price swings that occur when USDA reports are released. Johnson says NFU members are also uncertain about the availability of accurate and updated bids from grain purchasers after the open outcry trading day has closed with an established settlement price but electronic markets remain open. He says farmers need an explanation and answers to these reasonable questions.
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