The corn market plummeted this week, in large part, because traders are concerned about the funds rebalancing their portfolios. While most analysts are still bullish on the market over the long haul, one thing is certain -- the growth of renewable fuels is moving the markets. And that, in turn, propelled commodity trading at the Chicago Board of Trade to new heights in 2006.
The Chicago Board of Trade this week announced a new record volume of trading for 2006 – with 805 million contracts traded. That's an increase of nearly 20 percent from 2005 – and it marks the fifth consecutive record-breaking year for the 159-year old exchange.
Average daily volume ... (or ADV) ... reached over 3.2 (M) million contracts last year, up 20 percent from 2005. On the electronic trading platform, ADV was a record 2.2 (M) million contracts.
New high marks were also set for total agricultural volume – at more than 128-million contracts. Agricultural futures volume was over 106 million contracts and Agricultural options volume was more than 21 million.
Contributing to the growth across the Exchange's Agricultural complex were record annual volume totals in corn and wheat.
The new Corn complex record of more than 58-million contracts reflects a 72 percent Average Daily Volume increase over 2005.