Eurex (Overnight) Trade

With the uncertainty and sometimes volatility in the grain markets, movements in both the daytime (CBOT) and nighttime (EUREX) trading on the Chicago Board of Trade have made for an exciting, sometimes confusing, time in the markets. Your Cooperative uses both these markets in determining the prices for your commodities, and we feel it is important that all our patrons understand how this is done.
From 10:30 a.m. (Eastern Time) until closing at 2:15 p.m. (ET) the cash price for commodities is derived (using the posted basis) from the current bid on the CBOT. The closing price for the day is then used until trading on the EUREX opens at 9:00 p.m. (ET). The current bid on the EUREX is then used until the CBOT opens at 10:30 a.m. (ET) and the process begins again. It is the standard policy of the Cooperative Elevator to place open pricing orders on both the CBOT and EUREX unless instructed otherwise by the producer. Therefore, orders placed with the Cooperative may be filled if prices reach the price level of the order during EUREX trading hours, just as during the daytime CBOT business hours.
Your Cooperative uses these marketing boards not only to assist in setting the prices of commodities, but also to protect (hedge) the interests of both the company and its individual stockholders. There are also occasional deviations from the common practices above (i.e. holidays) we have not addressed, but would certainly cover with anyone who felt inclined to contact us with their questions. Please direct any questions you may have to the Marketing Dept. at the Pigeon Business Office at (800) 968-0601 or (989) 453-4500. Thank you.