Spring wheat may be a 130 year-old mainstay for the Minneapolis Grain Exchange, but this summer the MGEX will debut an entirely new commodity futures contract – and it could be a “juicy” opportunity for traders willing to brave the risk.
According to Rita Maloney, director of marketing and business development at MGEX, apple juice concentrate futures will likely turn up this summer on the exchange.
“It’s pretty simple,” Maloney tells the Pioneer Press. “We’ve launched our share of contracts, some successful, others not. What happened this time around is the industry came to us and said we are in need of your risk-management tools.”
As it turns out, recent years have proven remarkably volatile for the apple juice industry.
The same, of course, could be said of the frozen orange juice market. But OJ futures are already traded and, consequently, bestow hedging opportunities. Until now, the apple juice business has been without this luxury.
According to published reports about the looming arrival of this intriguing new contract, no shortage of regulatory and logistical hurdles must still be cleared before the exchange can debut the contract.
But the prospect is promising, says Maloney.
At present, the global apple juice market is valued at $3.2 billion.
“It is an incredibly growing industry,” Maloney says, adding that “food and beverage companies seek to use apple juice as a drink, a sweetener or an ingredient.”
All told, the addition of the new futures contract will be good for an exchange that, despite its length of existence, continues to grow at an impressive pace.
“This past February was the highest-volume month ever in the history of the exchange,” Maloney said. “When you think of an exchange that’s been around for 130 years, that’s pretty good.”