MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), highlights the support of the industry behind the newly launched Apple Juice Concentrate (AJC) futures and options contract.
Kevin Barley, a futures broker and past chairman of the Juice Products Association Futures Committee states, “The launch of AJC futures and options trading has been long awaited, and is now providing the industry with immediate price transparency. While volumes have been light thus far, my belief is that industry members are in the process of considering how and when to use futures contracts as a means for pricing and risk management and that volume and liquidity should pick up with time.”
The new AJC futures and options contract was developed by MGEX in response to industry demand. A risk management tool allowing market participants to manage price risk and protect against adverse cash price movements has never before been available in the AJC market. The contract is designed to reduce counterparty risk and lower overall transaction costs which is a benefit to both the AJC seller and the AJC buyer.
AJC trading hours are from 7:00 a.m. to 1:10 p.m. Central Time (CT) 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$1.00 per trade.
More information about the AJC contract can be found at www.mgex.com/ajc/.