A membership in the Minneapolis Grain Exchange (MGEX or Exchange) sold on Friday for $100,000 breaking the six-figure level for the first time in the Exchange’s history. It was the 10th membership sold in February.
“A return to profitability after four years of losses, the celebration of our 125th anniversary and the introduction of side-by-side trading are just three of the factors driving growth in volume, open interest and membership values at the MGEX,” said Exchange President and CEO Mark G. Bagan. “Value in the Exchange is growing because of market conditions and improvement in the Exchange’s overall operations. Not only are we experiencing significant growth in our trading operations, but our real estate holdings are adding to the overall bottom line, too.”
The vacancy rate in the Exchange’s complex of three office buildings has dropped from just over 30 percent in July 2005 to around 20 percent today. Management at the Exchange anticipates the vacancy rate to continue a steady decline over the next several months, which adds to overall financial performance of the Exchange and makes membership even more enticing to investors.
Members are also positive on the future growth of the MGEX. “The opportunities in the grain industry are enormous right now,” said Charles Gallup, a local trader at the Exchange and former Chairman of the Board. “The industry is recognizing the potential and acknowledging the positive growth trend that has occurred under the current MGEX management team. We have a great leadership team operating the Exchange and have seen improvements in volume, open interest and attention to customer service.”
