Traders who have become accustomed to trading corn or soybean futures may want to consider sending their money overseas, as Congress appears determined to force its will on American futures exchanges. It seems hard to believe that the United States would have ever arrived at the point that its financial markets would be less free than those in China. However, it should certainly be considered. Here are volumes for yesterday (7-24) on the Dalian Commodity Exchange in China:
Soybeans #1 Jan 09 volume: 1,111,266 (more than 10X the volume of USA)
Open Int: 544,948 (more than double the OI of USA)
Corn Jan 09
volume: 189,000 (greater than the USA)
Open Int: 352,364
(source: DCE)
On the Chicago Mercantile Exchange
Soybeans Nov 08
volume: 87,848
Open Int: 251,580
Corn Dec 08
volume: 133,145
Open Int:545,632
(source: CME)
The Dalian Exchange already trades with both greater volume and Open Interest on soybean futures than the American exchanges. Corn trades with about 2/3 the Open Interest of the American exchanges, but with substantially greater volume. The Dalian Exchange also offers trading in soybean meal and soybean oil with much greater volumes and Open Interest than the CME. Volume on the Dalian Exchange is also growing at nearly 100% per year!
