Futures and Options Launching August 13, 2012

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Proposed Regulations

The MGEX Rulebook would include the proposed regulations for AJC, pending approval. 

• Chapter 54
• Chapter 55
• Chapter 56

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MGEX Approved "Regular" Cold Storage Facilities

An adequate number of delivery locations is essential to assure a successful physically delivered contract. All deliveries on the AJC futures contract must be made through an MGEX certified "Regular" Cold Storage Facility.  These facilities must meet minimum requirements as defined in Chapter 56 of the MGEX Rulebook. 

List of Regular Cold Storage Facilities for AJC

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"Regularity" Application for Storage Facilities

The Regularity Application is a form to be completed by the operator of eligible warehouses located within 100 miles of major shipping ports along the mainland coasts of the United States. 

View the application for regularity.  For requirements of eligibility warehouses, see Chapter 56 of the MGEX Rulebook. 

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Warehouse Receipt

The negotiable warehouse receipt required for delivery on the AJC futures contract has been finalized.  Several cold storage facilities have adopted the negotiable warehouse receipt into their logistics systems. 

View the negotiable warehouse receipt and its terms and conditions.

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Cash Market Price Reporting

As part of the MGEX commitment to providing the AJC industry with valuable and accurate information, the MGEX website includes a link to the USDA's National Apple Processing Report, compiled by the Market News.  This weekly report contains valuable information on the Apple industry and reports weekly AJC cash prices. 

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Contract Specifications

The AJC futures contract and trading specifications detail both the requirements to deliver on an AJC futures contract and the required specifcations for trading AJC futures and options. Be sure to view them before the much anticipated launch of the AJC contract.

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About the AJC Contract

The MGEX AJC futures contract is a risk management tool offering suppliers and buyers a new, never before available tool to manage price risk.  Historically, the industry used forward contracting as a means of managing risk, however counter party risk remains.  Regulated futures contracts remove the counter party risk, which can be beneficial during periods of dramatic price swings.   

For the AJC processor, a futures contract offers the ability to protect inventory value and manage price risk prior to their eventual cash market sale through typical cash market activity.  For the AJC cash buyer, the futures contract may better protect profit margins by strategically setting a price, via substituting futures, in advance of their cash product needs. 

The MGEX AJC futures contract allows participants the opportunity to utilize the listed contract to hedge price risk, and offers all parties transparency in the price discovery process. 

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Contract Specs

 

 

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Find AJC historical pricing from the USDA

1. Enter the words "apple juice concentrate" in "Find Results."

2. Enter custom date range (MM/DD/YY) in"Search Options."

AJC Import Data 2003 - 2010

*Courtesy of ForeignTrade Division,

U.S. Census Bureau

AJC is produced in the United States, yet the vast majority of AJC consumed in the U.S. and around the world is produced in China, South America and Europe.  The Foreign Trade Division of the U.S. Census Bureau provides trade statistics on U.S. imports and exports, including AJC.

The worldwide AJC industry totals roughly $3.2 billion in value annually, according to statistics reported in the World Markets and Trade, 2007-2008 Global Concentrated Apple Juice. 

This multi-billion dollar industry has experienced growth at a rate of roughly 6% per year as worldwide demand increases for more natural methods of sweetening processed foods.