Beginning today, Monday, April 26, there is a new futures contract from the CME Group that’s of interest to pork and other livestock producers.
Distillers’ Dried Grain futures are available for trading exclusively on CME Globex, the CME Group electronic trading platform, completing its product suite for the corn crush for ethanol. A byproduct of corn-produced ethanol, distillers’ dried grain is used primarily as a feed supplement and is an important product for the livestock and dairy industries. Its adaptation into those animal production sectors has been significant in recent years.
DDG futures are a physically delivered contract that will bring much-needed price discovery and price transparency to the market. Particularly, this new product will enable customers to better manage their price risk in the feed, livestock, dairy, biofuels, grains and oilseed industries. In addition, DDG futures can be combined with corn and ethanol futures to establish the Corn-for-Ethanol-Crush margin.
You can get more information on the CME Group’s Web site.
Source: CME Group