A Minneapolis Grain Exchange (MGEX or Exchange) membership traded today at the record price of $170,000 and increase of 21 percent above the previous record of $140,000 set in June.
According to Martin F. Farrell, local trader and second vice chairman of the MGEX board, people are realizing the value that the MGEX has as an exchange. “We’re a major exchange, and I believe we are way under valued,” he said. “The value of trading our five financially settled agricultural index products is being recognized by the industry. There is no delivery process and trading them just makes sense. We’ve also had funds invest in Exchange memberships, which is further testimony to our value.”
In June, the MGEX announced the signing of a letter of intent with Dean Kinnas for his company to act as a market maker in the five financially settled index contracts. Details of the agreement are being finalized, but trading is expected by August.
The Exchange has also logged record spring wheat trading volume in three of the last six months and has seen growth in its electronic trading as well with the top three electronic volume months occurring since February.
Information on membership and current bids and offers is available at http://www.mgex.com/membership.html or by calling Adam Reinhart at +1 612-321-7158.
