MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), today announced the official launch date of August 13, 2012 for its new Apple Juice Concentrate (AJC) futures and options contract. MGEX developed the AJC contract after thorough preparation and collaboration with many segments representing the AJC industry.
The vast majority of AJC consumed in the U.S. and around the world is produced in China, South America and Europe. This multi-billion dollar industry has experienced growth at a rate of roughly 6% per year as worldwide demand increases for more natural methods of sweetening processed foods.
For the AJC processor, the AJC contract offers the ability to protect inventory value and manage price risk prior to their eventual cash market sale. For the AJC cash buyer, the AJC contract may better protect profit margins by strategically setting a price, via substituting futures, in advance of their cash product needs.
“MGEX is pleased to be able to respond to the needs of the AJC industry by providing transparency in the price discovery process and a tool for additional risk management for all AJC market participants.” said Mark G. Bagan, CEO & President, MGEX.
“MGEX has a more than 130 year history of providing an efficient, regulated marketplace for market participants around the world to effectively address these critical business concerns. We welcome both new and current market participants to explore this new product offering which launches August 13, 2012.” said Georgette McDonald, Director, Business Services and Product Development, MGEX.
Information on MGEX and the AJC contract are available at www.mgex.com.