“Completing two consecutive successful deliveries underscores the effectiveness of the process design we have worked hard with the ethanol industry to establish,” said Dave Lehman, Managing Director of the Commodities Group for the CBOT. “We commend Noble Americas Corp., our Ethanol contract market maker, and the firms that participated in the delivery process for the commitment they continue to show to the ethanol industry and the contract.”
“We have been particularly pleased with the seamless deliveries during the first two expirations,” said Fabrizio Zichichi, Executive Vice President of Noble Americas Corp. “This was important considering that ethanol on the CBOT is a new futures contract. The process worked very efficiently, providing the ethanol industry with a viable risk management tool.”
Created to answer the industry’s demand for a reliable and transparent hedging instrument and to expand trading opportunities for customers, the CBOT launched the CBOT Ethanol Futures contract on March 23, 2005. The Exchange worked extensively with the ethanol industry in developing the contract, which includes an innovative delivery mechanism that ensures the contract’s effectiveness for both price discovery and managing price volatility within the domestic ethanol market.
For more information on CBOT Ethanol futures, please visit the Ethanol section of CBOT.com.
