MGEX Apple Juice Concentrate Contract

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MGEX launched apple juice concentrate on August 13, 2012. Besides this contract, MGEX also trades Hard Red Spring Wheat futures and options.

Previously, the apple juice industry used forward contracts to manage price risk rather than futures contracts. While apple juice concentrate is produced in the United States, the vast majority consumed in the U.S. is from China, South America and Europe. Worldwide, the apple juice concentrate industry totals $3.2 billion in value annually.[1]

The AJC industry has grown at a rate of about 6 percent per year as worldwide demand increases for more natural methods of sweetening processed foods.[2]

Exchange MGEX
Settlement Physically delivered
Contract Size 1,800 gallons
Pricing Unit $4.50 per contract
Tick Value $4.50 per contract
Contract Months Jan, Mar, May, Jul, Sep, Nov
First Notice Date The last business day of the month preceding the delivery month
Last Trading Day The business day preceding the fifteenth calendar day of that contract month
  Open Outcry Electronic
Trading Hours 7:00 a.m. - 1:10 p.m. 7:00 a.m. - 1:10 p.m.
Ticker Symbol AJC AJC
Price Limits 1.00 per gallon expandable to $1.50 $1.00 per gallon expandable to $1.50

John Lothian News Interview[edit]

Layne Carlson Tells the Story Behind MGEX’s Apple Juice Contract
The Minneapolis Grain Exchange, now known as MGEX, launched Apple Juice Concentrate (AJC) futures and options on August 13, 2012. We asked Layne Carlson, corporate secretary and treasurer of the exchange, for the story behind the new Apple Juice contract. Interview by JLN publisher John Lothian. Published August 23, 2012. Watch at[3]