A fertile future

The CME is hoping its introduction of fertiliser futures will protect the industryfrom fluctuations in the price of natural gas – a vital ingredient in mostnitrogen fertilisers. But is it a case of too little too late? By Paul Lyon

The Chicago Mercantile Exchange (CME) last month saidthat it plans to list futures and options on futures contracts based on threeof the most commonlyused varieties of fertiliser. The contracts will trade exclusively on CME’sGlobex electronic trading platform and, according to the exchange, will therebybecome the first agricultural products to trade on a purely electronic basis – inthe US at least. More importantly, the contracts will also become the only avenuefor hedging the price of

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