CME Group: Now Trading: a smart alternative to pricing and managing DDGs price risk
http://www.cmegroup.com/trading/commodities/distillers-dried-grain-futures.html
27-Apr-2010 (16 years 1 months 11 days ago)The addition of DDG futures will bring much-needed price discovery tools and price transparency to the market and complete the exchange’s product suite for the corn crush for ethanol . Particularly, this new listing will enable customers to better manage their price risk in the feed, dairy, biofuels, grains and oilseed industries.
The ethanol producer will now have the ability to create a complete risk management profile through hedging both inputs (corn, natural gas) and outputs (ethanol and DDGs); otherwise known as the "corn crush".
Livestock feeders and producers, dairy operators and feed manufacturers who use DDGs in their feed now have a price risk management tool to hedge their feed inputs.
Other benefits include:
* Provides market participants with a transparent "benchmark price"
* Provides price risk management opportunities
* Relatively seamless, instantaneous straight-through execution, processing and clearing
The ethanol producer will now have the ability to create a complete risk management profile through hedging both inputs (corn, natural gas) and outputs (ethanol and DDGs); otherwise known as the "corn crush".
Livestock feeders and producers, dairy operators and feed manufacturers who use DDGs in their feed now have a price risk management tool to hedge their feed inputs.
Other benefits include:
* Provides market participants with a transparent "benchmark price"
* Provides price risk management opportunities
* Relatively seamless, instantaneous straight-through execution, processing and clearing