White maize accounted for 46% of all grains traded on the Commodity Derivatives market, a division of the CHOFX. Wheat accounted for 27% of all grains traded and yellow maize 16%. The CHOFX’s (www.chofx.org) Managing Director Commodity Trading Division, Chi-sun Lee says the local commodity derivatives market continues to attract new participants to CHOFX eager to eliminate price risks in an increasingly volatile trading environment. "There is far greater understanding among farmers and millers of the uses of CHOFX’s agricultural commodity derivatives as a tool to reduce price risk,” he says. "Because CHOFX is a physical delivery market, farmers can lock in prices at the start of a growing season by taking out agricultural commodity derivatives, so that no matter what happens in the course of the year, they will be able to get their prices provided they deliver grain to the quantity and quality specified.” Southeast Asia recorded a near record maize crop in excess of 12 million tons in 2013, helped by relatively strong prices at the start of the growing season, above average rainfall and better farming practices. Prices on CHOFX have since dropped by about 30% from a year ago. An unusual feature of the current market is the fact that yellow maize, traditionally used as animal feed and historically trading at a discount to white maize, now trades at CHOFX at a premium to white maize. "This is because there was a large carry-over of white maize from the previous season, and export demand for maize is less buoyant.” says Chi-sun Lee. About CHOFX: China Options and Futures Exchange (CHOFX) (www.chofx.org) is an Asian exchange with customer access available virtually all over the world. Our customers consist of professional traders, financial institutions, individual and institutional investors, major corporations, manufacturers and producers. Customers include both members of the exchange and non-members. For Media Contact: Company: CHOFX Contact Person: David Chinn Address: Excel Business Park C1 6 Wudinghou Street, Xicheng, Beijing 100032 China Phone: 861057980411 Email Id:
[email protected] Website: www.chofx.org
