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The ethanol producer will now have the ability to create a complete risk management profile through hedging both inputs (corn, natural gas) and outputs (ethanol and DDGs); otherwise known as the "corn crush".
Livestock feeders and producers, dairy operators and feed manufacturers who use DDGs in their feed now have a price risk management tool to hedge their feed inputs.
Other benefits include:
* Provides market participants with a transparent "benchmark price"
* Provides price risk management opportunities
* Relatively seamless, instantaneous straight-through execution, processing and clearing
http://www.cmegroup.com/trading/commodities/distillers-dried-grain-futures.html
