Abstract:
Minneapolis Grain Exchange came in to existence in the year 1881. But, at that time, it was known as Minneapolis Chamber of Commerce. In the year 1947, it got its' present name. It was established as a centralized marketplace for grains. At present, in this exchange trading of future contracts and options contracts takes place between innumerable buyers and sellers, both electronically and through auctioning system.Minneapolis Grain Exchange(MGEX) was established long time back in 1881. The exchange made its first commodity futures trading after two years of establishment. From that time, this Minneapolis Grain Exchange is continuously providing price risk management services to innumerable producers and customers of commodities market through trading of Futures Contracts.
History of Minneapolis Grain Exchange
The Minneapolis Grain Exchange was first set up as a regional cash market in order to serve agricultural producers and processors . Actually, this exchange was established with the objective of promoting fair trade of agricultural produces like wheat, corn and oats.Prior to establishment of this Minneapolis Grain Exchange, farmers were being deprived as they were unaware about whether they are getting the right price for their crops or not. So, in order to provide them with a centralized marketplace the Minneapolis Grain Exchange was established in the name of Minneapolis Chamber of Commerce. Later, in 1947, the exchange got its' present name of Minneapolis Grain Exchange.
After two years of establishment, in the year 1883, Minneapolis Grain Exchange which was then known as Minneapolis Chamber of Commerce, traded commodity futures contract for the first time. This first futures contract was introduced in order to help the sellers and buyers of spring wheat, in managing price risk.
