Pit Closures = Corn, Soybean Market Instability, Trader Says

Once Electronic Trading Took Over, Big Local Traders Trimmed Back Their Trade Size


By Mike McGinnis, Successful Farming

Agriculture.com - 6/2/2021


Itís been six years since CME Group shifted from trading agricultural commodities mostly on the floor of the exchange to its electronic trading platform (Globex).


In July 2015, the exchange closed its agricultural futures trading pits, leaving open only its options trading pits. This May, CME Group officially closed all its open-outcry trading pits, ending a tradition that started in the mid-19th century.


The Chicago Board of Trade (CBOT) Exchange opened in 1848. Corn, wheat, and oats open-outcry futures contracts started trading in 1877. Soybean open-outcry futures contracts opened in 1936.


Open outcry consists of humans standing in a trading pit, yelling bids and offers, and using hand signals to buy and sell contracts...