CME Group Inc., the Chicago-based futures exchange operator, said second quarter profit surged 22 percent, partly behind increased trading in hogs, cattle and other agricultural commodities.
Trading in CME’s agricultural commodities averaged 855,000 contracts a day during the quarter, up 4.5 percent from 818,000 a day during the same period in 2009. Interest rate- and equities-based trading was even stronger, up 38 percent and 16 percent, respectively.
Lean hog futures and options trading averaged 34,190 contracts a day during the first six months of the year, up 15 percent.
There were “positive volume trends across all asset classes,” Craig Donohoe, CME’s chief executive officer, said during a conference call with analysts today following the release of financial results. Agriculture, energy and foreign exchange products had record quarterly revenue, Donohoe said.
Global market turmoil fueled CME’s profit surge, as banks and other investors increasingly used the exchange’s financial contracts, such as Eurodollar and Treasury bond futures, to offset risk.
Earlier this year, shrinking animal inventories sent CME cattle and hog futures rallying to multi-year highs. Hedge funds and other speculators piled into cattle and hog markets amid expectations commodities in general were heading for an inflationary period.