Feb 16, 2010
CHICAGO, February 16, 2010 – CME Group, the world’s leading and most diverse derivatives marketplace, today announced the launch of Distillers’ Dried Grain agricultural commodity futures contracts, scheduled to begin trading April 26. These contracts are listed with, and subject to, the rules and regulations of the CBOT.
Distillers’ Dried Grains, a byproduct of corn-produced ethanol, is used for animal feed, including livestock and dairy cows. The electronically traded and physically delivered futures contracts can be used by livestock and ethanol producers, commercial corn interests and others to lock in the price of feed or to hedge their ethanol refining margin in combination with corn, natural gas and ethanol futures.
“This product will enable our feed customers to directly manage price risk of feed inputs that they haven’t been able to before,” said Tim Andriesen, CME Group Managing Director for Commodities. “Using the Distillers’ Dried Grain futures, along with our corn, natural gas and ethanol contracts, also allows real margin management for participants in the fast-growing ethanol sector, once again highlighting the synergies of the CME Group product suite.”
Each contract is equivalent to 100 short tons of Distillers’ Dried Grains. Deliverable grades must include a minimum of 26 percent protein and 8 percent fat as well a maximum of 12 percent fiber content and 11.5 percent moisture content.
For more information on Distillers’ Dried Grain futures or other commodity contracts, please go to www.cmegroup.com/commodities.
As the world’s largest and most diverse derivatives marketplace, CME Group (www.cmegroup.com) is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through its CME Globex® electronic trading platform and its trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the largest central counterparty clearing services in the world, which provides clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort®. These products and services ensure that businesses everywhere can substantially mitigate counterparty credit risk in both listed and over-the-counter derivatives markets.
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