DDG futures contract launches

By | April 15, 2010
CME Group launched a distillers grains (DDG) commodity futures contract April 26. Under the existing rules and regulations of the Chicago Board of Trade, now merged with CME Group, the contracts will offer another option in risk management, according to Tim Andriesen, CME Group managing director for commodities. "This product will enable our feed customers to directly manage price risk of feed inputs." The contracts will equal 100 short tons of DDG with the following specifications: 26 percent protein, 8 percent fat, a maximum 12 percent fiber and 11.5 percent moisture content.