The investors are well versed with the fact that the CME Group and ICE are at the pedestal of commodity exchanges in the world. Hence, any tussle between the former and the latter, will have repercussions in the commodity markets around the world. The reason for the latest altercations between the exchanges is due to the elongated trading hours in the agro-commodities to 22 hours to inculcate the fundamentals during the trading hours.

In the latest report on Tuesday, the CME Group notified Iowa farmers, Chicago brokers and huge global hedge funds to brace themselves for a longer trading day, as it announced plans for nearly round-the-clock grains trading to fend off pressures from its counterpart Intercontinental Exchange. The CME’s Chicago Board of Trade, the hub of trading tradition and the center of the global grain world, will move its entire grain and soybean complex futures contracts to a 22-hour trading day starting on May 14. The announcement confirmed reports and rumors of a similar nature that was making the rounds.

This report will garner well for the dealers who will for the first time have the opportunity to trade immediately after some of the market’s most important data i.e. USDA export figures and monthly fundamental reports are published. In the recent memory, CME had stood by its long-standing desire among many of the industry’s veterans to keep the markets closed during the early morning hours, giving traders the opportunity to consider reflecting on the complex reports at some leisure. But many of the market’s newer entrants, such as hedge funds, have quietly pressed to revolutionize those traditions thereby leading to more investment opportunities.

Many analysts and market faithful’s believe that the final push for the CME’s decision was provided by the Atlanta-based ICE who had announced plans to challenge Chicago’s grip on grains markets by listing wheat, corn and soy contracts, on a 22-hour basis. Other commodity exchanges, including NYMEX, had already shifted to near 24-hour trading cycles as China’s rise urged demand for Asia-hours activity, while hedge funds and high frequency traders requested for greater access. But investors of CME’s CBOT trading floor-which will continue to trade during the same outcry hours-had resisted the move. They said it will give a major push to large, speculative traders off the floor who have unthinkable tradable money and advanced computer systems to rapidly place the orders.

Inspite of all the information and rumors doing the rounds, ICE has refused to comment on the latest plan of the CME Group.

Have a great weekend everyone!