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History
Since 1881, the Minneapolis Grain Exchange (MGEX) has provided
valuable price discovery and risk management services to producers
and consumers involved in volatile commodities markets around the
world.
MGEX past | MGEX
present | MGEX future | Contract
Timeline | 125th Anniversary
HISTORY IN THE MAKING
Founded as the Minneapolis Chamber of Commerce in 1881, the Minneapolis
Grain Exchange has served producers, processors and millers for
126 years. The Minneapolis Chamber of Commerce opened as a regional
cash marketplace to promote fair trade and to prevent trade abuses
in wheat, oats and corn. Before the development of this centralized
marketplace, farmers in the region had no way of knowing if they
were receiving the best price for their grain. Most farmers harvested
and sold their crops at the same time, so the subsequent glut of
grain into the market set the supply and demand curve askew.
In 1883, just two years later, the Chamber of Commerce introduced
its first futures contract: hard red spring wheat. This contract
was launched to address price risk management needs of buyers and
sellers of spring wheat and still trades today, as it has continuously
since its launch.
For over 60 years, the Exchange operated as the Minneapolis Chamber
of Commerce. However, by 1946, the term “Chamber of Commerce”
had become associated with organizations devoted mainly to civic
and social issues. So, in 1947, the Minneapolis Chamber of Commerce
became the Minneapolis Grain Exchange, and the new Minneapolis Chamber
of Commerce developed as the business and civic organization it
is today.
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