CME Group Inc. (CME), the world’s largest futures exchange, extends grain-trading hours today in response to the threat of competitors seeking a share of the electronic transactions that now dominate the market. Access to the CME’s Chicago Board of Trade, which first offered corn futures in 1877, is rising to 21 hours a day from 17, a week after the 12-year-old IntercontinentalExchange Inc. (ICE), or ICE, introduced a 22-hour session and its first-ever grain contracts. The Kansas City Board of Trade and Minneapolis Grain Exchange also start expanded hours today.
Sunday, May 20, 2012
Grain-Pit Traders Squeezed Out as CME Expands to Match ICE Hours
CME Group Inc. (CME), the world’s largest futures exchange, extends grain-trading hours today in response to the threat of competitors seeking a share of the electronic transactions that now dominate the market. Access to the CME’s Chicago Board of Trade, which first offered corn futures in 1877, is rising to 21 hours a day from 17, a week after the 12-year-old IntercontinentalExchange Inc. (ICE), or ICE, introduced a 22-hour session and its first-ever grain contracts. The Kansas City Board of Trade and Minneapolis Grain Exchange also start expanded hours today.
Commodity wrap: Euro worries dampen mood
Commodities continued to remain weak on the back of uncertainty in the euro zone. The possibility of Greece's exit from the euro zone, the strengthening dollar, economic slowdown and the chance of further downgrades are keeping the sentiment bearish for most commodities.
Investors Least Bullish in 2012 as Crisis Escalates
Hedge funds reduced wagers on a rally in commodities to the lowest this year on mounting speculation that Greece will leave the euro, slowing global growth and curbing demand for everything from copper to soybeans. Money managers reduced net-long positions across 18 U.S. futures and options by 15 percent to 616,841 contracts in the week ended May 15, the lowest since Dec. 27, Commodity Futures Trading Commission data show. Gold bets fell for a second week and to the lowest since December 2008, while copper holdings tumbled 69 percent, the most in five weeks. Cotton wagers tumbled to the lowest in five years.
G8 fails to inspire euro, risk currencies
SYDNEY, May 21 (Reuters) - The euro started the week on a subdued note and commodity currencies remained mired at multi-month lows as investors found little comfort in a pledge by world leaders to take all steps necessary to combat financial turmoil. The single currency last stood at $1.2786, a touch firmer than its New York close on Friday as markets saw Saturday's comments from a summit of the G8 leading industrialised nations as short on details and long on rhetoric.
Corn Takes Off as China Buys
CHICAGO—U.S. corn futures jumped 9.4% last week, lifted by concerns about tight current supplies and a rally in wheat prices. The sharp rise came after corn futures had fallen 11% in the month through May 11, dragged down by forecasts for a large U.S. harvest this fall. Analysts still expect the influx of new supplies later this year to weigh on prices, but the continued strong spot-market demand for on-hand corn helped boost prices, highlighting concerns about the immediate availability of the grain.
G8 backs Greece, vows to combat financial turmoil
CAMP DAVID, Maryland (Reuters) – World leaders backed keeping Greece in the euro zone on Saturday and vowed to take all steps necessary to combat financial turmoil while revitalizing a global economy increasingly threatened by Europe’s debt crisis. A summit of the G8 leading industrialized nations came down solidly in favor of a push to balance European austerity – an approach long driven by German Chancellor Angela Merkel – with a new dose of U.S.-style stimulus seen as vital to healing ailing euro-zone economies. But it was clear that divisions remained.
EU summit to raise pressure on Merkel
European leaders are drawing up a series of crisis-fighting proposals to raise at an informal EU summit this week that have in the past been rejected by Germany putting further pressure on Chancellor Angela Merkel. The proposals, which could include empowering the eurozone’s €500bn rescue fund to directly recapitalise faltering European banks and commonly backed eurozone bonds, have been backed by some leaders in the past but forced off the agenda by the German chancellor’s objections.
What is a reserve currency, and how do traders use it?
A reserve currency is a national currency held by many other governments around the world as part of their foreign exchange reserves. Reserve currency status indicates a powerful economy as other governments depend on the reserve currency's stability to manage their own monetary policies.
Coffee Bear Market Cools as Prices Consolidate
FuturesBlogs | Coffee Bear Market Cools as Prices Consolidate
Arabica Coffee's negative fundaments and the potential for aggressive hedge selling by South American producers on any significant rally may keep pressure on Coffee prices. Aggressive traders who are bearish on Coffee may wish to consider using any rally attempts to explore selling out-of-the-money calls in Coffee futures options. For example, with July Coffee trading at 179.10 as of this writing, the July Coffee 195 calls could be sold for 1.10, or $412.50 per contract, not including commissions. The premium received would be the maximum potential gain on the trade, which would be realized at option expiration in early June should the July futures be trading below 195.00. Given the potential risks involved in selling naked options, traders should have an exit strategy in place should the position move against them. An example of one such strategy would be to buy back the options sold prior to expiration should the July futures close above chart resistance seen at 193.00.
Arabica Coffee's negative fundaments and the potential for aggressive hedge selling by South American producers on any significant rally may keep pressure on Coffee prices. Aggressive traders who are bearish on Coffee may wish to consider using any rally attempts to explore selling out-of-the-money calls in Coffee futures options. For example, with July Coffee trading at 179.10 as of this writing, the July Coffee 195 calls could be sold for 1.10, or $412.50 per contract, not including commissions. The premium received would be the maximum potential gain on the trade, which would be realized at option expiration in early June should the July futures be trading below 195.00. Given the potential risks involved in selling naked options, traders should have an exit strategy in place should the position move against them. An example of one such strategy would be to buy back the options sold prior to expiration should the July futures close above chart resistance seen at 193.00.
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