World Grain - September 2021 - 32

SOSLAND PUBLISHING
years
commerce. Agricultural production was shifting west
of the Mississippi and Ohio rivers, but the major population
growth was happening on the East Coast.
" There had to be a system developed to get grain
from the heartland back to the East Coast, " Irwin
said. " Chicago became a major transshipment point
for connecting grain from individual farmers to a central
place where it could be shipped by barge or rail.
That was a natural place where futures trading would
start to occur. A lot of people were dealing in a lot of
forward contracts because of the physical movement
through Chicago. "
The Chicago Board of Trade (CBOT) formed as a
cash market for grain in 1848. Creation of a central
grain exchange allowed farmers and grain producers to
sell crops at set prices in the months between harvests
and allowed consumers to buy grains at transparent
prices throughout the year, CME said.
Standardized futures contracts were introduced by
The Kansas City
Board of Trade
was formed on
the banks of
the Missouri
River in 1856, at
the heart of one
of the world's
most prolific
wheat-growing
areas. The market
first started
trading futures
contracts in
1876.
Looking to the future and possible disruptors, the
use of blockchain for trading hasn't taken off as some
industry experts thought it would. Still, digitization is
having ripple effects throughout the supply chain and
leading to a changing role for grain elevators as farmers
become savvier at marketing their own bushels.
There's also been the birth of new technology companies
such as Covantis and Agriota that seek to modernize
and streamline trade and post-trade activities.
" A lot has changed just in the last 20 years, " Ehmke
said. " I wouldn't say the pace of change is slowing;
there will continue to be new innovations that will
expedite these trends of consolidation and faster and
lighter trading platforms. You can bet on that any day
of the week. "
Market history
While some form of futures trading can be traced back
to ancient Greek and Phoenician merchants who sold
their goods throughout the world, the modern globally
traded futures markets have their origins in the 19th
century United States, according to CME Group.
Commodity markets arose as increasing agricultural
production and consumption required a central market
for delivery, sale and purchase.
Agricultural producers and consumers experienced
drastic seasonal and supply fluctuation, gluts and shortages
and tumultuous price fluctuations, CME said. At
a time when storage facilities were primitive and the
markets were disorganized, hubs of agricultural commerce
started to emerge in cities located around navigable
US waterways.
By 1848, canal and railroad infrastructure linked
the Great Lakes with the Mississippi River, making
Chicago, Illinois, an ideal location for agricultural
32
CBOT in 1865, introducing a level of reliability and
security to buyers and sellers that stabilized markets
against possible default, CME said.
" There's always people wanting to adjust their price
exposure in this forward contract market, so why not
create a market that allows people to trade in and out
of the long and short side of forward contracts, " Irwin
said. " That's the idea of a future market.
" The whole system developed to make it as easy and
low cost and guaranteed way of trading and adjusting
price exposure on either side of the transaction. "
More exchanges were formed in the decades to come,
including the Kansas City Board of Trade in 1856, the
forerunner to the Minneapolis Grain Exchange in 1881
and the New York Mercantile Exchange in 1882.
" Once we started creating future contracts, other
ideas developed, " Irwin said. " The whole system took
some time to develop. But by the 1870s and 1880s, we
had pretty recognizable futures trading comparable
to today. "
Within these exchanges, the primary method of trade
was open outcry, where buyers and sellers were able to
see and hear each other in order to make bids and offer
prices. An individual could take a place in the " pit " or
" floor " and engage with traders, or they could commission
a floor broker who would trade on their behalf.
" Traders in the pit conducted business among themselves,
while buyers and sellers of the security in question
relayed bid and offer prices to their representative
floor brokers, " FXCM said.
Technology impacted the exchanges and trading
early on, through the adoption of the telegraph, ticker
tape and telephone. The telegraph, invented in 1832,
allowed for distribution of financial newsletters in
areas far away from the marketplace, according to
September 2021 / World Grain / World-Grain.com
Photo courtesy of Missouri Valley Special Collections/Kansas City Public Library
http://www.World-Grain.com

World Grain - September 2021

Table of Contents for the Digital Edition of World Grain - September 2021

World Grain - September 2021 - Intro
World Grain - September 2021 - 1
World Grain - September 2021 - 2
World Grain - September 2021 - 3
World Grain - September 2021 - 4
World Grain - September 2021 - 5
World Grain - September 2021 - 6
World Grain - September 2021 - 7
World Grain - September 2021 - 8
World Grain - September 2021 - 9
World Grain - September 2021 - 10
World Grain - September 2021 - 11
World Grain - September 2021 - 12
World Grain - September 2021 - 13
World Grain - September 2021 - 14
World Grain - September 2021 - 15
World Grain - September 2021 - 16
World Grain - September 2021 - 17
World Grain - September 2021 - 18
World Grain - September 2021 - 19
World Grain - September 2021 - 20
World Grain - September 2021 - 21
World Grain - September 2021 - 22
World Grain - September 2021 - 23
World Grain - September 2021 - 24
World Grain - September 2021 - 25
World Grain - September 2021 - 26
World Grain - September 2021 - 27
World Grain - September 2021 - 28
World Grain - September 2021 - 29
World Grain - September 2021 - 30
World Grain - September 2021 - 31
World Grain - September 2021 - 32
World Grain - September 2021 - 33
World Grain - September 2021 - 34
World Grain - September 2021 - 35
World Grain - September 2021 - 36
World Grain - September 2021 - 37
World Grain - September 2021 - 38
World Grain - September 2021 - 39
World Grain - September 2021 - 40
World Grain - September 2021 - 41
World Grain - September 2021 - 42
World Grain - September 2021 - 43
World Grain - September 2021 - 44
World Grain - September 2021 - 45
World Grain - September 2021 - 46
World Grain - September 2021 - 47
World Grain - September 2021 - 48
World Grain - September 2021 - 49
World Grain - September 2021 - 50
World Grain - September 2021 - 51
World Grain - September 2021 - 52
World Grain - September 2021 - 53
World Grain - September 2021 - 54
World Grain - September 2021 - 55
World Grain - September 2021 - 56
World Grain - September 2021 - 57
World Grain - September 2021 - 58
World Grain - September 2021 - 59
World Grain - September 2021 - 60
World Grain - September 2021 - 61
World Grain - September 2021 - 62
World Grain - September 2021 - 63
World Grain - September 2021 - 64
World Grain - September 2021 - 65
World Grain - September 2021 - 66
World Grain - September 2021 - 67
World Grain - September 2021 - 68
World Grain - September 2021 - 69
World Grain - September 2021 - 70
World Grain - September 2021 - 71
World Grain - September 2021 - 72
World Grain - September 2021 - 73
World Grain - September 2021 - 74
World Grain - September 2021 - 75
World Grain - September 2021 - 76
World Grain - September 2021 - 77
World Grain - September 2021 - 78
World Grain - September 2021 - 79
World Grain - September 2021 - 80
World Grain - September 2021 - 81
World Grain - September 2021 - 82
World Grain - September 2021 - 83
World Grain - September 2021 - 84
World Grain - September 2021 - 85
World Grain - September 2021 - 86
World Grain - September 2021 - 87
World Grain - September 2021 - 88
World Grain - September 2021 - 89
World Grain - September 2021 - 90
World Grain - September 2021 - 91
World Grain - September 2021 - 92
World Grain - September 2021 - 93
World Grain - September 2021 - 94
World Grain - September 2021 - 95
World Grain - September 2021 - 96
World Grain - September 2021 - 97
World Grain - September 2021 - 98
World Grain - September 2021 - 99
World Grain - September 2021 - 100
https://digital.world-grain.com/sosland/wg/world-grain-september-2021
https://digital.world-grain.com/sosland/wg/world-grain-august-2021
https://digital.world-grain.com/sosland/wg/world-grain-july-2021
https://digital.world-grain.com/sosland/wg/world-grain-june-2021
https://digital.world-grain.com/sosland/wg/world-grain-may-2021
https://digital.world-grain.com/sosland/wg/world-grain-april-2021
https://digital.world-grain.com/sosland/wg/world-grain-march-2021
https://digital.world-grain.com/sosland/wg/world-grain-february-2021
https://digital.world-grain.com/sosland/wg/2021_01_01
https://digital.world-grain.com/sosland/wg/2020_12_01
https://digital.world-grain.com/sosland/wg/2020_11_01
https://digital.world-grain.com/sosland/wg/2020_10_01
https://digital.world-grain.com/sosland/wg/2020_09_01
https://digital.world-grain.com/sosland/wg/2020_08_01
https://digital.world-grain.com/sosland/wg/2020_07_01
https://digital.world-grain.com/sosland/wg/2020_06_01
https://digital.world-grain.com/sosland/wg/2020_05_01
https://digital.world-grain.com/sosland/wg/2020_04_01
https://digital.world-grain.com/sosland/wg/2020_03_01
https://digital.world-grain.com/sosland/wg/2020_02_01
https://digital.world-grain.com/sosland/wg/2020_01_01
https://digital.world-grain.com/sosland/wg/2019_12_01
https://digital.world-grain.com/sosland/wg/2019_11_01
https://digital.world-grain.com/sosland/wg/2019_10_01
https://digital.world-grain.com/sosland/wg/2019_09_01
https://digital.world-grain.com/sosland/wg/2019_08_01
https://digital.world-grain.com/sosland/wg/2019_07_01
https://digital.world-grain.com/sosland/wg/2019_06_01
https://digital.world-grain.com/sosland/wg/2019_05_01
https://digital.world-grain.com/sosland/wg/2019_04_01
https://digital.world-grain.com/sosland/wg/2019_03_01
https://digital.world-grain.com/sosland/wg/2019_02_01
https://digital.world-grain.com/sosland/wg/2019_01_01
http://digital.world-grain.com/sosland/wg/2018_12_01
http://digital.world-grain.com/sosland/wg/2018_11_01
http://digital.world-grain.com/sosland/wg/2018_10_01
http://digital.world-grain.com/sosland/wg/2018_09_01
http://digital.world-grain.com/sosland/wg/2018_08_01
http://digital.world-grain.com/sosland/wg/2018_07_01
http://digital.world-grain.com/sosland/wg/2018_06_01
http://digital.world-grain.com/sosland/wg/2018_05_01
http://digital.world-grain.com/sosland/wg/2018_04_01
http://digital.world-grain.com/sosland/wg/2018_03_01
https://www.nxtbook.com/sosland/wg/2018_02_01
https://www.nxtbook.com/sosland/wg/2018_01_01
https://www.nxtbook.com/sosland/wg/2017_12_01
https://www.nxtbook.com/sosland/wg/2017_11_01
https://www.nxtbook.com/sosland/wg/2017_10_01
https://www.nxtbook.com/sosland/wg/2017_09_01
https://www.nxtbook.com/sosland/wg/2017_08_01
https://www.nxtbook.com/sosland/wg/2017_07_01
https://www.nxtbook.com/sosland/wg/2017_06_01
https://www.nxtbook.com/sosland/wg/2017_05_01
https://www.nxtbook.com/sosland/wg/2017_04_01
https://www.nxtbook.com/sosland/wg/2017_03_01
https://www.nxtbook.com/sosland/wg/2017_02_01
https://www.nxtbook.com/sosland/wg/2017_01_01
https://www.nxtbook.com/sosland/wg/2016_12_01
https://www.nxtbook.com/sosland/wg/2016_11_01
https://www.nxtbook.com/sosland/wg/2016_10_01
https://www.nxtbook.com/sosland/wg/2016_09_01
https://www.nxtbook.com/sosland/wg/2016_08_01
https://www.nxtbook.com/sosland/wg/2016_07_01
https://www.nxtbook.com/sosland/wg/2016_06_01
https://www.nxtbook.com/sosland/wg/2016_05_01
https://www.nxtbook.com/sosland/wg/2016_04_01
https://www.nxtbook.com/sosland/wg/2016_03_01
https://www.nxtbook.com/sosland/wg/2016_02_01
https://www.nxtbook.com/sosland/wg/2016_01_01
https://www.nxtbook.com/sosland/wg/2015_12_01
https://www.nxtbook.com/sosland/wg/2015_11_01
https://www.nxtbook.com/sosland/wg/2015_10_01
http://digital.world-grain.com/sosland/wg/2015_09_01
http://digital.world-grain.com/sosland/wg/2015_08_01
http://digital.world-grain.com/sosland/wg/2015_07_01
http://digital.world-grain.com/sosland/wg/2015_06_01
http://digital.world-grain.com/sosland/wg/2015_05_01
https://www.nxtbook.com/sosland/wg/2015_04_01
https://www.nxtbook.com/sosland/wg/2015_03_01
https://www.nxtbook.com/sosland/wg/2015_02_01
http://digital.world-grain.com/sosland/wg/2015_01_01
https://www.nxtbook.com/sosland/wg/2014_12_01
https://www.nxtbook.com/sosland/wg/2014_11_01
https://www.nxtbook.com/sosland/wg/2014_10_01
https://www.nxtbook.com/sosland/wg/2014_09_01
https://www.nxtbook.com/sosland/wg/2014_08_01
https://www.nxtbook.com/sosland/wg/2014_07_01
https://www.nxtbook.com/sosland/wg/2014_06_01
https://www.nxtbook.com/sosland/wg/2014_05_01
https://www.nxtbook.com/sosland/wg/2014_04_01
https://www.nxtbook.com/sosland/wg/2014_03_01
https://www.nxtbook.com/sosland/wg/2014_02_01
https://www.nxtbook.com/sosland/wg/2014_01_01
https://www.nxtbook.com/sosland/wg/2013_12_01
https://www.nxtbook.com/sosland/wg/2013_11_01
https://www.nxtbook.com/sosland/wg/2013_10_01
https://www.nxtbook.com/sosland/wg/2013_09_01
https://www.nxtbook.com/sosland/wg/2013_08_01
https://www.nxtbook.com/sosland/wg/2013_07_01
https://www.nxtbook.com/sosland/wg/2013_06_01
https://www.nxtbook.com/sosland/wg/2013_05_01
https://www.nxtbook.com/sosland/wg/2013_04_01
https://www.nxtbook.com/sosland/wg/2013_03_01
https://www.nxtbook.com/sosland/wg/2013_02_01
https://www.nxtbook.com/sosland/wg/2013_01_01
https://www.nxtbook.com/sosland/wg/2012_12_01
https://www.nxtbook.com/sosland/wg/2012_11_01
https://www.nxtbook.com/sosland/wg/2012_10_01
https://www.nxtbook.com/sosland/wg/2012_09_01
https://www.nxtbook.com/sosland/wg/2012_08_01
https://www.nxtbook.com/sosland/wg/2012_07_01
https://www.nxtbook.com/sosland/wg/2012_06_01
https://www.nxtbook.com/sosland/wg/2012_05_01
https://www.nxtbook.com/sosland/wg/2012_04_01
https://www.nxtbook.com/sosland/wg/2012_03_01
https://www.nxtbook.com/sosland/wg/2012_02_01
https://www.nxtbook.com/sosland/wg/2012_01_01
https://www.nxtbook.com/sosland/wg/2011_12_01
https://www.nxtbook.com/sosland/wg/2011_11_01
https://www.nxtbook.com/sosland/wg/2011_10_01
https://www.nxtbook.com/sosland/wg/20111_09_01
https://www.nxtbook.com/sosland/wg/2011_08_01
https://www.nxtbook.com/sosland/wg/2011_07_01
https://www.nxtbook.com/sosland/wg/2011_06_01
https://www.nxtbook.com/sosland/wg/2011_05_01
https://www.nxtbook.com/sosland/wg/2011_04_01
https://www.nxtbook.com/sosland/wg/2011_03_01
http://digital.world-grain.com/sosland/wg/2011_02_01
http://digital.world-grain.com/sosland/wg/2011_02_01
http://digital.world-grain.com/sosland/wg/2011_01_01
http://digital.world-grain.com/sosland/wg/2010_12_01
http://digital.world-grain.com/sosland/wg/2010_11_01
http://digital.world-grain.com/sosland/wg/2010_10_01
http://digital.world-grain.com/sosland/wg/2010_09_01
http://digital.world-grain.com/sosland/wg/2010_08_01
http://digital.world-grain.com/sosland/wg/2010_07_01
http://digital.world-grain.com/sosland/wg/2010_06_01
http://digital.world-grain.com/sosland/wg/2010_05_01
http://digital.world-grain.com/sosland/wg/2010_04_01
http://digital.world-grain.com/sosland/wg/2010_03_01
http://digital.world-grain.com/sosland/wg/2010_02_01
http://digital.world-grain.com/sosland/wg/2010_01_01
http://digital.world-grain.com/sosland/wg/2009_12_01
http://digital.world-grain.com/sosland/wg/2009_11_01
http://digital.world-grain.com/sosland/wg/2009_10_01
http://digital.world-grain.com/sosland/wg/2009_09_01
http://digital.world-grain.com/sosland/wg/2009_08_01
http://digital.world-grain.com/sosland/wg/2009_07_01
http://digital.world-grain.com/sosland/wg/2009_06_01
http://digital.world-grain.com/sosland/wg/2009_05_01
http://digital.world-grain.com/sosland/wg/2009_04_01
http://digital.world-grain.com/sosland/wg/2009_03_01
http://digital.world-grain.com/sosland/wg/2009_02_01
http://digital.world-grain.com/sosland/wg/2009_01_01
http://digital.world-grain.com/sosland/wg/2008_12_01
http://digital.world-grain.com/sosland/wg/2008_11_01
http://digital.world-grain.com/sosland/wg/2008_10_01
http://digital.world-grain.com/sosland/wg/2008_09_01
http://digital.world-grain.com/sosland/wg/2008_08_01
http://digital.world-grain.com/sosland/wg/2008_07_01
http://digital.world-grain.com/sosland/wg/2008_06_01
http://digital.world-grain.com/sosland/wg/2008_05_01
http://digital.world-grain.com/sosland/wg/2008_04_01
http://digital.world-grain.com/sosland/wg/2008_03_01
http://digital.world-grain.com/sosland/wg/2008_02_01
http://digital.world-grain.com/sosland/wg/2008_01_01
http://digital.world-grain.com/sosland/wg/2007_12_01
http://digital.world-grain.com/sosland/wg/2007_11_01
http://digital.world-grain.com/sosland/wg/2007_10_01
http://digital.world-grain.com/sosland/wg/2007_09_01
http://digital.world-grain.com/sosland/wg/2007_08_01
http://digital.world-grain.com/sosland/wg/2007_07_01
http://digital.world-grain.com/sosland/wg/2007_06_01
http://digital.world-grain.com/sosland/wg/2007_05_01
http://digital.world-grain.com/sosland/wg/2007_04_01
http://digital.world-grain.com/sosland/wg/2007_03_01
http://digital.world-grain.com/sosland/wg/2007_02_01
http://digital.world-grain.com/sosland/wg/2007_01_01
http://digital.world-grain.com/sosland/wg/2006_12_01
http://digital.world-grain.com/sosland/wg/2006_11_01
http://digital.world-grain.com/sosland/wg/2006_10_01
http://digital.world-grain.com/sosland/wg/2006_09_01
http://digital.world-grain.com/sosland/wg/2006_08_01
http://digital.world-grain.com/sosland/wg/2006_07_01
http://digital.world-grain.com/sosland/wg/2006_06_01
http://digital.world-grain.com/sosland/wg/2006_05_01
http://digital.world-grain.com/sosland/wg/2006_04_01
http://digital.world-grain.com/sosland/wg/2006_03_01
http://digital.world-grain.com/sosland/wg/2006_02_01
http://digital.world-grain.com/sosland/wg/2006_01_01
http://digital.world-grain.com/sosland/wg/2005_12_01
http://digital.world-grain.com/sosland/wg/2005_11_01
http://digital.world-grain.com/sosland/wg/2005_10_01
http://digital.world-grain.com/sosland/wg/2005_09_01
http://digital.world-grain.com/sosland/wg/2005_08_01
http://digital.world-grain.com/sosland/wg/2005_07_01
http://digital.world-grain.com/sosland/wg/2005_06_01
http://digital.world-grain.com/sosland/wg/2005_05_01
http://digital.world-grain.com/sosland/wg/2005_04_01
http://digital.world-grain.com/sosland/wg/2005_03_01
http://digital.world-grain.com/sosland/wg/2005_02_01
http://digital.world-grain.com/sosland/wg/2005_01_01
http://digital.world-grain.com/sosland/wg/2004_12_01
http://digital.world-grain.com/sosland/wg/2004_11_01
http://digital.world-grain.com/sosland/wg/2004_10_02
http://digital.world-grain.com/sosland/wg/2004_10_02
http://digital.world-grain.com/sosland/wg/2004_10_01
http://digital.world-grain.com/sosland/wg/2004_09_01
http://digital.world-grain.com/sosland/wg/2004_08_01
https://www.nxtbookmedia.com