CME Set to Launch Grain Sorghum Basis Futures Contract on August 24

The Chicago Mercantile Exchange (CME) is set to launch a grain sorghum basis futures contract on August 24. This new contract aims to provide an instrument for hedging the price difference between sorghum and corn.

Dan O'Brien and Guy Allen at Kansas State University have conducted research on why this new contract is needed, as well as its implications for the Kansas country elevator system.

The launch of the grain sorghum basis futures contract comes ahead of a meeting planned by the BOOR (Basis Options Reference) committee on August 11. The purpose of this meeting has not been disclosed in the source.