Minneapolis Grain Exchange facts for kids
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| Subsidiary | |
| Industry | Business services |
| Founded | 1881 |
| Products | Futures and options |
| Parent | Miami International Holdings |
The Minneapolis Grain Exchange (MGEX) is a special marketplace where people buy and sell grain products. It's like a big online store for things like wheat, oats, and corn. MGEX started in 1881 in Minneapolis, Minnesota, USA. Its main goal was to make sure trading was fair and honest.
Since it began, MGEX has been the main place to trade a special kind of wheat called Hard Red Spring Wheat (HRSW). This wheat is very high in protein. You can find HRSW in many foods you eat, like bagels, pizzas, good quality breads, and some noodles and cookies. Most of this wheat grows in the northern parts of the U.S. and Canada.
In 2020, MGEX joined with another company called Miami International Holdings. Now, MGEX is a part of that larger company.
Contents
How the Grain Exchange Works
MGEX helps people trade different types of grain products. They offer special agreements called "futures" and "options." These are like promises to buy or sell something at a set price later on.
Trading Grain Indexes
MGEX also offers products based on the prices of different grains. These are called "indexes." Think of an index as a way to track the average price of something. MGEX has indexes for:
- Hard Red Spring Wheat (HRSI)
- Hard Red Winter Wheat (HRWI)
- Soft Red Winter Wheat (SRWI)
- National Corn Index (NCI)
- National Soybean Index (NSI)
MGEX works with a company called Data Transmission Network (DTN). DTN provides lots of information about farming and weather. MGEX uses this information to create its special index products.
Electronic Trading
Today, most trading at MGEX happens online. People use a computer system called CME Globex to buy and sell futures. Options can be traded both online and sometimes in person. This makes trading fast and easy for people all over the world.
History of MGEX
The Minneapolis Grain Exchange started in 1881. Back then, it was called the Minneapolis Chamber of Commerce. For over 125 years, it has been an important place for farmers, food makers, and flour mills. The three buildings where the Grain Exchange is located in downtown Minneapolis are now famous landmarks. They are listed on the National Register of Historic Places.
In 1883, the Chamber of Commerce started its first "futures contract" for hard red spring wheat. This was a big step for the exchange. By 1946, the name "Chamber of Commerce" usually meant groups that helped with community issues. So, in 1947, the marketplace changed its name to the Minneapolis Grain Exchange. Today, most people know it as MGEX.
For many years, traders would meet in a big room and shout out their offers to buy and sell. This was called "open outcry" trading. But on December 19, 2008, MGEX stopped this kind of trading. Now, almost all trading is done electronically using computers.
Who Owns MGEX?
As of 2022, the Minneapolis Grain Exchange is owned by Miami International Holdings. This company helps manage different financial markets.
See also
- MF Global
