AgWired

The Minneapolis Grain Exchange (MGEX) keeps setting – and breaking – new records.

MGEX’s July 2010 trading volume was 170,679 – a 98 percent increase over the same period last year and the thirteenth-best monthly Exchange volume in MGEX’s 129 year history. July futures open interest soared 61 percent year-over-year and total Exchange open interest increased by 51 percent in the same period.

Numerous records were set in July including a daily total exchange volume record of 17,973 set on July 15, making it the eighth best volume day in Exchange history. A new July futures trading volume record was also set with 168,490 Hard Red Spring Wheat (HRSW) futures contracts trading during the month. Electronic milestones included four top 20 electronic volume days; July 15 when 17,255 contracts traded electronically; July 22 when 12,820 contracts traded electronically; July 29 when 10,964 contracts traded electronically; and July 30 when 10,859 contracts traded electronically. Additionally, July total electronic volume reached 155,644, making it the second-highest electronic trading month in MGEX history.

“Stronger wheat market fundamentals have spurred trading interest from both the buy side and the sell side in our Hard Red Spring Wheat contract,” Rita Maloney, Director, Marketing and Business Development, MGEX said. “As the only U. S. wheat contract with a protein specification, our flagship contract continues to be an affective risk management tool for our worldwide market participants,” Maloney said.

In a few posts, I’ve mentioned my love affair with field corn, and how it was first planted and harvested. What I failed to mention was the other “half” of what shaped my childhood ag experience and quite possibly, my appreciate for it. Soybeans. The other day, I was driving along the highway (Where unfortunately, the speed limit is still 55. 55? That’s slow enough for me to look around.) when I noticed the wind making soybean leaves look like waves on the ocean. It really was a beautiful sight, one otherwise taken for granted had the thought not occurred to me that my family spent “the other half” of their planting season drilling beans. (By the way, this photo was taken by my “other half.” He’s better with the camera than I am!)

Then I realized how little I actually knew about the history of soybeans. Here’s a snapshot:

Soybeans originate from China. The first soybeans arrived in America in the early 1800s but it wasn’t until 1879 that a few brave farmers began to plant soybeans as forage for their livestock. Around 1900, the USDA was conducting tests on soybeans and encouraging farmers to plant them as animal feed. In 1904, the famous American chemist, G. W. Carver discovered that soybeans were a valuable source of protein and oil. He encouraged farmers to rotate their crops with soybeans. To the surprise of farmers, this produced a better crop. But it wasn’t until the 1940s that farming of soybeans really took off in America.

I think this is all part of the process of educating myself about where our modern ag industry comes from; knowing that a part of my own history emerged on our lands some 70 years ago. Although I don’t work on behalf of soybean farmers, many of my captive audience members raise soybeans. So I thought I’d learn a little more about them today.

Until we walk again…