CME Group Won’t Return to In-Person Trading

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IOWA — The CME Group announced it will not reopen in-person trading pits. In March of last year, physical trading pits of the CME Group were closed because of the pandemic – including the spots for corn, wheat, soybeans and other commodities.

CME says those will not reopen.. Contracts for ag commodities will be traded only electronically now. Only the Eurodollar options pit – which opened last August – will stay open. This allows contracts to trade in both in-person and electronic venues.

Trading floors have seen traffic declines as electronic trading became popular. Last year around 450 traders, clerks and employees were on the floor most days.

Waiver Challenge

  There’s another court challenge to the wave of ethanol waivers the last administration granted small refiners. It involves some exemptions granted just before the Trump Administration ended. Three of those waivers were equal to 260 million gallons in lost ethanol demand granted to Sinclair.

  The case went to the 10th Circuit Court of Appeals. Most recently the Biden EPA moved to vacate those exemptions. Geoff Cooper with the Renewable Fuels Association says that would send it back to EPA to sort out if it wants to give the exemptions or if they are qualified. Cooper says they had already won the case but it was under appeal and sent to the Supreme Court.

“And we’re expecting a decision out of the Supreme Court sometime in June around that decision, and that should play into EPA’s approach moving forward on these exemptions,” says Cooper, “Not just for these three Sinclair exemptions, but more broadly, for the other 63, 65, whatever it is, pending exemptions that are still sitting at EPA that are left over from the past administration.”

And Now the Markets …

  Nearing the end of the week there was a heavy trade in the beans. Analyst Jamey Kohake has the details:

“To finish the week off we got another strong trade, to start off in corn we’re hitting the spread old crop versus new crop. The trade has been buy the July sell the December and the last two days we’ve seen a correction. And brought it back below a dollar difference, so lots of weather premium in the market funds still long and still looks like the trend is sharply higher yet until we get a better handle on acreage and also the carryout numbers on next week’s WASDE report. Over to beans. Nice heavy trade, similar story razor thin carryout looking for drop down 105 in the WASDE report. Over to cattle, feeders were all over the place we were down three off of sharply higher corn trade this morning. We’ve seen technical selling, we took out yesterday’s lows, and Tuesday’s lows and just had a bunch of technical stops. Over to the hogs 50-60 cents lower, just a bit of profit taking here today. Nothing major, trend is sharply higher. Look for cash and cutouts to keep screaming higher and looking for the market to grind on higher and exports to continue strong to Mexico and China.

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