1. NASDA Annual Meeting Extended Grain trading hours impact on
September 16, 2012
Extended Grain trading hours impact on
Producers and Agribusiness.

2. Troy Presley Advance Trading Inc tprelsey@advance-trading.com
Background:
B.S. Kansas State University Agriculture Economics
-Bartlett Grain Co Grain Originator, Rail transportation
- originated specialty grains, rail, truck, container logistics
-Dodge City Coop Grain originator, Grain merchandiser
- Producer marketing, Series 3 & 30
- BNSF Shuttle loader
- 20 million bushels marketed annually
-Advance Trading Inc Risk Management Advisor
Troy Presley
Advance Trading Inc

3. Before “electronic trading”
History of Grain trading hours and how they have changed.
Before “electronic trading”
Hours of trade: 9:30am to 1:15 pm

4. Current picture of the CBOT
History of Grain trading hours and how they have changed.
Current picture of the CBOT
Hours of trade: Pit 9:30am to 2:00pm** M-F
Electronic 5:00pm to 2:00pm following day (Sun-Fri)
** Pit opens at 7:20 for major USDA crop reports

5. Impact of extended grain trading hours on Producers and Agribusiness
Has the Producer benefited?
Increased hours of trade to help lay off risk.
More technology available to manage risk.
Has the Agribusiness benefited?
More opportunity to lay off risk (no “pre hedging”)
More opportunity to include foreign business

6. Negative Consequences?
Impact of extended grain trading hours on Producers and Agribusiness
Negative Consequences?
Producer
Nobody likes change! (At first)
Education. Knowing when he can and cannot market grain
Agribusiness
Nobody likes change! (At First)
Technology can be costly.
Policy becomes a tool.
More personnel needed.

7. But we can keep improving!

8. End both Pit and Electronic trade at 1:15 pm CST.
Currently CME only allows 15 minute before the start of the “electronic session to enter orders Extend to 30 minutes?