New Market - Apple Juice Futures
Posted: Thu Aug 02, 2012 5:35 pm
MGEX, a Designated Contract Market (DCM) and Derivatives Clearing Organization (DCO), has announced the official launch date of August 13, 2012 for its new Apple Juice Concentrate (AJC) futures and options contract. MGEX developed the AJC contract after thorough preparation and collaboration with many segments representing the AJC industry.
The vast majority of AJC consumed in the U.S. and around the world is produced in China, South America and Europe. This multi-billion dollar industry has experienced growth at a rate of roughly 6% per year as worldwide demand increases for more natural methods of sweetening processed foods.
For the AJC processor, the AJC contract offers the ability to protect inventory value and manage price risk prior to their eventual cash market sale. For the AJC cash buyer, the AJC contract may better protect profit margins by strategically setting a price, via substituting futures, in advance of their cash product needs.
“MGEX is pleased to be able to respond to the needs of the AJC industry by providing transparency in the price discovery process and a tool for additional risk management for all AJC market participants.â€
The vast majority of AJC consumed in the U.S. and around the world is produced in China, South America and Europe. This multi-billion dollar industry has experienced growth at a rate of roughly 6% per year as worldwide demand increases for more natural methods of sweetening processed foods.
For the AJC processor, the AJC contract offers the ability to protect inventory value and manage price risk prior to their eventual cash market sale. For the AJC cash buyer, the AJC contract may better protect profit margins by strategically setting a price, via substituting futures, in advance of their cash product needs.
“MGEX is pleased to be able to respond to the needs of the AJC industry by providing transparency in the price discovery process and a tool for additional risk management for all AJC market participants.â€