The Chicago Board of Trade (CBOT) has launched CBOT Denatured Fuel Ethanol futures contract beginning today. The new contract is designed to address the growing demand for an effective hedging instrument for domestically produced ethanol.

Bernard W. Dan, president and CEO, says, "There is significant growth potential in ethanol production, and projections for 2005 represent a 145 percent increase over production levels in 2000. Domestically, corn is the primary material used in ethanol production, a factor which makes the CBOT the natural home for ethanol futures. We expect this new contract to meet the industry's demand for a reliable and transparent instrument for managing ethanol's price volatility, while also providing additional trading opportunities for customers within the Exchange's highly liquid Corn products, the benchmark for pricing within the corn industry."

The CBOT board of directors also approved contract specifications for CBOT South American Soybean futures. The new commodity contract is designed to meet the global marketplace's need for a liquid risk management tool based on soybeans produced in Brazil and Argentina.

The new contract, which is pending certification to the Commodity Futures Trading Commission, is scheduled to launch in the second quarter of 2005.

Source: CBOT Release