MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), issues a reminder about the much-anticipated MGEX Apple Juice Concentrate (AJC) futures and options contract, which launches on Monday, August 13, 2012.
“We are pleased to be able to be part of the upcoming AJC launch and support the efforts of MGEX in bringing this new risk management tool to the juice industry,” said Peter Hahn, President, Louis Dreyfus Citrus, Inc.
“Given the past growth and volatility in the AJC market, we think MGEX’s new AJC futures and options contract offers players a great new way to reduce risk and hedge their AJC needs,” said J. Ross Colbert, Executive Director, Global Strategist – Beverages, Rabobank International.
The new AJC futures and options contract offers a tool for market participants to manage price risk and protect against adverse cash price movements in the AJC market. The contract is designed to reduce counterparty risk, a benefit to both the AJC seller and the AJC buyer. With this multi-billion dollar industry growing at roughly 6% per year, this new risk management tool is necessary to provide market price protection to all parties involved.
AJC trading hours will be from 7:00 a.m. to 1:10 p.m. Central Time on the CME Globex® electronic trading platform. In an effort to provide cost efficient trading for market participants, MGEX is offering reduced exchange fees for AJC trades; MGEX members will be able to trade with no exchange fees while non-MGEX members can trade for a nominal exchange fee of $1. These specially reduced AJC exchange fees are available from August 13, 2012 to October 31,2012. MGEX is also offering free live price quotes for the AJC contract on www.mgex.com.
The United States Department of Agriculture (USDA) will be reporting the weekly AJC cash market prices and conduct the sampling and testing of stored AJC stocks to ensure the product meets MGEX contract specifications. The MGEX AJC Manual is available on the MGEX website, and provides detailed information on the MGEX delivery process, applicable regulations and procedures. For complete information on the new AJC contract, visit www.mgex.com/ajc/.
“MGEX is excited to launch the AJC futures and options contract on Monday,” said Mark G. Bagan, MGEX President & CEO. “After careful consideration and consultation with key players in the AJC industry, MGEX is confident the contract will provide the marketplace with an effective risk management tool,” said Bagan.
