Minneapolis Grain Exchange
Encyclopedia
The Minneapolis Grain Exchange (MGEX) was formed in 1881 as a regional cash marketplace to promote fair trade and to prevent trade abuses in wheat, oats and corn.
MGEX has been the principal market for Hard Red Spring Wheat (HRSW) since 1881, offering futures and options contracts based on its unique commodity. Futures are traded exclusively electronically on the CME Globex platform. Options are traded side-by-side. HRSW is one of the highest-protein wheats. It is found in bagels, high-quality breads and cereals. It is planted mostly in the U.S. Northern Plains and the Canadian Prairies.
MGEX offers five financially settled agricultural index products: Hard Red Spring Wheat Index (HRSI), Hard Red Winter Wheat Index (HRWI), Soft Red Winter Wheat Index (SRWI), National Corn Index (NCI) and National Soybean Index (NSI).
In an agreement with Data Transmission Network
, (now Telvent
DTN), a business-to-business
electronic commerce and information services company in Omaha, Nebraska
, MGEX has exclusive rights to DTNs agriculture and weather data bases, which the exchange uses to develop index
products.
Founded as the Minneapolis Chamber of Commerce in 1881, the MGEX has been a marketplace for producers, processors and millers for more than 125 years. The three Grain Exchange buildings in downtown Minneapolis are now listed on the National Register of Historic Places
.
In 1883, the Chamber of Commerce introduced its first futures contract: hard red spring wheat. By 1946 "Chamber of Commerce" had become synonymous with organizations devoted mainly to civic and social issues. In 1947, the exchange was renamed the Minneapolis Grain Exchange. Today the exchange is most recognized by its logo and uses MGEX as first reference.
On December 19, 2008, the Minneapolis Grain Exchange ceased operations of the open outcry
trading floor, but continues daily operations for the electronic trading platform. Today, HRSW futures trade exclusively electronically and options trade side-by-side.
- 6 a.m.: HRSW Futures and Options overnight trading closes and enters pre-open
- 9:30 a.m. - 1:30 p.m.: HRSW Futures trade electronically
- 9:30 a.m. - 1:30 p.m.: HRSW Options trade side by side
- 6 p.m. - 1:45 p.m. Agricultural Index Products trade electronically
- 6 p.m. - 7:15 a.m.: HRSW Futures and Options trade electronically
MGEX has been the principal market for Hard Red Spring Wheat (HRSW) since 1881, offering futures and options contracts based on its unique commodity. Futures are traded exclusively electronically on the CME Globex platform. Options are traded side-by-side. HRSW is one of the highest-protein wheats. It is found in bagels, high-quality breads and cereals. It is planted mostly in the U.S. Northern Plains and the Canadian Prairies.
MGEX offers five financially settled agricultural index products: Hard Red Spring Wheat Index (HRSI), Hard Red Winter Wheat Index (HRWI), Soft Red Winter Wheat Index (SRWI), National Corn Index (NCI) and National Soybean Index (NSI).
In an agreement with Data Transmission Network
Data Transmission Network
DTN, formerly known as Data Transmission Network, is a subscription-based service for the delivery of real-time weather, agricultural and commodity market information. Telvent DTN is the name of the service that is owned by its parent company Telvent...
, (now Telvent
Telvent
Telvent is an information technology and industrial automation company specializing in SCADA, GIS and related IT systems for pipeline, energy utility, traffic, agriculture and environmental monitoring industries. Their customer base is worldwide, but concentrated in Spain and North America...
DTN), a business-to-business
Business-to-business
Business-to-business describes commerce transactions between businesses, such as between a manufacturer and a wholesaler, or between a wholesaler and a retailer...
electronic commerce and information services company in Omaha, Nebraska
Omaha, Nebraska
Omaha is the largest city in the state of Nebraska, United States, and is the county seat of Douglas County. It is located in the Midwestern United States on the Missouri River, about 20 miles north of the mouth of the Platte River...
, MGEX has exclusive rights to DTNs agriculture and weather data bases, which the exchange uses to develop index
Index (economics)
In economics and finance, an index is a statistical measure of changes in a representative group of individual data points. These data may be derived from any number of sources, including company performance, prices, productivity, and employment. Economic indices track economic health from...
products.
National Register of Historic Places
The National Register of Historic Places is the United States government's official list of districts, sites, buildings, structures, and objects deemed worthy of preservation...
.
In 1883, the Chamber of Commerce introduced its first futures contract: hard red spring wheat. By 1946 "Chamber of Commerce" had become synonymous with organizations devoted mainly to civic and social issues. In 1947, the exchange was renamed the Minneapolis Grain Exchange. Today the exchange is most recognized by its logo and uses MGEX as first reference.
On December 19, 2008, the Minneapolis Grain Exchange ceased operations of the open outcry
Open outcry
Open outcry is the name of a method of communication between professionals on a stock exchange or futures exchange. It involves shouting and the use of hand signals to transfer information primarily about buy and sell orders...
trading floor, but continues daily operations for the electronic trading platform. Today, HRSW futures trade exclusively electronically and options trade side-by-side.
- 6 a.m.: HRSW Futures and Options overnight trading closes and enters pre-open
- 9:30 a.m. - 1:30 p.m.: HRSW Futures trade electronically
- 9:30 a.m. - 1:30 p.m.: HRSW Options trade side by side
- 6 p.m. - 1:45 p.m. Agricultural Index Products trade electronically
- 6 p.m. - 7:15 a.m.: HRSW Futures and Options trade electronically