Kansas State Researchers Weigh In on New CME Grain Sorghum Futures Contract

A new futures contract for grain sorghum will launch on August 24th on the Chicago Mercantile Exchange (CME). This contract aims to provide a tool for hedging price differences between sorghum and corn. Researchers from Kansas State University have investigated the need for this contract and its implications for the country elevator system in Kansas.

Dr. Daniel O'Brien and Guy Allen conducted research on 'why' the new contract is necessary and the impact it will have on the Kansas country elevator system. They will present their findings at a discussion event, which includes time for questions and answers. The event will be held from 11:00 am to 1:00 pm on August 11th at the Great Bend Events Center.

The new CME grain sorghum basis futures contract is expected to provide an instrument that can hedge price differences between sorghum and corn. This could benefit employees of the Kansas country elevator system who are interested in trading this contract, as well as producers who want to learn more about it.