Minneapolis Grain Exchange facts for kids
Quick facts for kids |
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Minneapolis Grain Exchange
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The three-building Minneapolis Grain Exchange viewed from the west
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| Location | 400 and 412 S. 4th St and 301 4th Ave. S., Minneapolis, Minnesota |
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| Built | 1881 as Chamber of Commerce |
| Architect | Kees and Colburn (main building, 1902), Long, Lamoreaux & Long (east building, 1909), and Bertrand and Chamberlain (north building, 1928) |
| Architectural style | Sullivanesque |
| NRHP reference No. | 95000821 |
| Added to NRHP | November 23, 1977 |
The Minneapolis Grain Exchange (MGEX) is a special marketplace where people buy and sell grain products. It's like a big trading floor for things like wheat, oats, and corn. It started in 1881 in Minneapolis, Minnesota, in the United States. Its main goal was to make sure trading was fair and to stop bad practices in the grain market. In 2020, MGEX joined with another company called Miami International Holdings.
MGEX has been the main place to trade a special type of wheat called Hard Red Spring Wheat (HRSW) since 1881. They offer special contracts for buying and selling this unique grain. HRSW is known for having a lot of protein. You can find it in foods like bagels, pizzas, high-quality breads, cereals, and some noodles and cookies. This type of wheat is mostly grown in the Northern Plains of the U.S. and the Canadian Prairies.
How the Grain Exchange Works
The Minneapolis Grain Exchange offers different ways to trade farm products. They have five special products based on how much certain crops are worth. These include:
- Hard Red Spring Wheat Index (HRSI)
- Hard Red Winter Wheat Index (HRWI)
- Soft Red Winter Wheat Index (SRWI)
- National Corn Index (NCI)
- National Soybean Index (NSI)
MGEX has a special agreement with a company called Data Transmission Network (now Telvent DTN). This company provides lots of information about farming and weather. MGEX uses this information to create its special trading products.
Today, most trading happens online using a system called CME Globex. Some other types of trading, called "options," can be done both online and in person.
History of the Grain Exchange
The Minneapolis Grain Exchange started in 1881. Back then, it was called the Minneapolis Chamber of Commerce. For over 125 years, it has been a meeting place for farmers, food makers, and flour mills. The three buildings where the Grain Exchange is located in downtown Minneapolis are now listed as important historical places.
In 1883, the Chamber of Commerce started its first "futures contract" for hard red spring wheat. This was a way to agree on a price for wheat to be delivered later. By 1946, the name "Chamber of Commerce" usually meant groups that helped with community issues. So, in 1947, the exchange changed its name to the Minneapolis Grain Exchange. Today, people often just call it MGEX.
On December 19, 2008, the Minneapolis Grain Exchange stopped its old-fashioned "open outcry" trading. This was when traders would shout out bids and offers on a trading floor. Now, almost all trading happens online using computers.
Who Owns the Grain Exchange?
In 2022, the Minneapolis Grain Exchange was owned by Miami International Holdings.
