Distillers Futures

摘要

Trying to get a handle on the market for distillers grains (DG) is not unlike throwing a houlihan loop at a coyote. The darn thing's right in front of you, but with all the ducking and dodging, you can't quite seem to make the catch. Thus, on April 26, The Chicago Mercantile Exchange (CME) opened the market for electronic trading of a dried DG futures contract, in an attempt to give cattle feeders and ethanol plants another way to hedge their price risk. Developing a futures contract for dried DG makes sense, says Darrell Mark, University of Nebraska-Lincoln Extension livestock marketing economist, given the extent to which DG has become a standard part of feedlot rations.