CHICAGO (Reuters) - The CME Group will delay listing of two corn futures contracts that had been scheduled to start trading on Dec. 14 as it continues a review of delivery points which could expand to St. Louis in Missouri, the exchange said in a statement on Tuesday.
The delay covers the July 2020 and December 2020 contracts. The exchange said it would also delay listing of all subsequent months.
There are 25 delivery points for corn futures in the existing contract specifications. Of these, 23 are located along the Illinois River in Illinois and two along Lake Michigan, according to the exchange’s website.
St. Louis already is a delivery point for soybean and wheat.
“The more delivery points that you can have, it just makes it easier to utilize the contract, potentially,” said Joe Lardy, an analyst at CHS Hedging. “Spreading these points around just gives a little more flexibility.”
CHS Hedging is a division of CHS Inc, which owns two of the corn delivery points, at Pekin and Morris in Illinois.
Lardy did not know whether CHS had been asked to give feedback to the CME on the potential changes.
Reporting by Michael Hirtzer and Julie Ingwersen; editing by Grant McCool