06-08-2012 11:33 AM
Just got word from the CME Group that they're expanding pit trading in the afternoon to 2:00 to match up with the 3-hour break in electronic trading from 2-5 each weekday afternoon. Here's more from the report:
CME Group to Expand CBOT Grain and Oilseed Open Outcry Trading Hours to 2 p.m. CT
CHICAGO, June 8, 2012 – CME Group, the world’s leading and most diverse derivatives marketplace, today announced it will extend open outcry trading hours for CBOT Grain and Oilseed futures and options to 2 p.m. CT, Monday to Friday. Daily settlements will move from 1:15 p.m. CT and will be based on market activity at or around 2 p.m. CT each day for the Grain and Oilseed futures and options as well as for Ethanol futures and options. The new open outcry trading hours will be effective beginning June 25, 2012, pending CFTC review.
Products included in the expanded hours are CBOT Corn, Mini-Sized Corn, Soybeans, Mini-Sized Soybeans, Wheat, Mini-Sized Wheat, Soybean Meal, Soybean Oil, Rough Rice and Oats futures and options, plus all related calendar spread options and inter-commodity spread options.
This follows other recent changes to CBOT trading hours.
Starting May 21, 2012, electronic trading hours for CBOT Grain, Oilseed and Ethanol futures and options were extended to Sunday to Friday, 5:00 pm to 2:00 p.m. CT. CME Group has also taken steps to extend morning open outcry hours on major USDA report days, and, pending CFTC review, open outcry trading for CBOT Grain and Oilseed futures and options will begin at 7:20 a.m. CT starting with the June 12 USDA reports.
Seems to make a little more sense than the first change to me. What do you think? Will it mean anything new?
Agriculture.com Multimedia Editor
06-08-2012 11:52 AM
Doesn't affect us, but if I was a floor trader I'd be grumbling. You now have to stay an extra 45 minutes each day, and on major crop report days you need to be amped up and ready to go at 7:20. What?? Nearly 7 hours straight on the floor is a long time. Of course pit trading will eventually be done away with, and then it won't matter.
06-08-2012 11:58 AM
We did hear a rumor yesterday that USDA's right now looking at moving the big reports back to the afternoon instead of the current 7:30 AM time so trading's not going on when the numbers roll out. So, I guess that would mean something like 2:15 or 2:30, maybe. If that's the case, then, it would mean electronic trading will start a few hours after the report, but pit trading won't start until the following morning. So, how would that affect how the trade digests those USDA numbers?
Agriculture.com Multimedia Editor
06-08-2012 12:25 PM
It might settle down some by the opening of the pit trade. Course if your the wrong way with the report you probably won't get much sleep that night.
Get yourself set up for electronic trading.
06-10-2012 09:57 AM
I don't think I like the idea of overseas markets being open for businss about the time our pits have closed and the market reports are out. It seems to me that would give the overseas the abilitiy to set the tone for the markets and we farmers who still use brokers or sell through elevators would be behind.
But, I'm not arguilng that - I'm just throwing out an intiial impression. Maybe as some have said we just need to get the electronic version in our mind and go on from there.
i'd still like the reports out while the U.S. markets have a full day to gum them over and digest them - maybe 0900 or 1100 or such.
06-11-2012 04:51 PM
It will mean that everybody gets to wait until the afternoon electronic opening to either get out of trades or put hedges on.
Better off to have them in the morning so the market can fully adjust to the news. Everybody is going to have to adjust to the new hours.