|Apple Juice Concentrate
Trading hours: 7:00 a.m. - 1:10 p.m. (CT), Monday through Friday
The MGEX AJC contract was mentioned in an NPR Marketplace broadcast on November 21. MGEX Chief Regulatory Officer Layne Carlson was featured in the broadcast. To view the article and listen to the broadcast, click here.
Webinars with Kevin Barley
How and Why to Use Exchange for Physicals (EFPs)
Hedging Basics for AJC Trading Companies
Strategy using AJC Futures for Buyers and Processors
Steps for Trading an AJC Futures and Options Contract
AJC Futures and Options 101
MGEX has prepared an Apple Juice Concentrate (AJC) Manual for all Regular warehouses, Clearing Members, AJC product owners and market participants to use as a reference. Please see the updated Manual for additional information.
AJC Margins Change, 7-23-13
MGEX Margin Requirements
Please visit chapters 54, 55 and 56 of the MGEX Rules & Regulations for regulations regarding AJC.
List of Regular Warehouses for AJC
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. For requirements of eligible warehouses, see Chapter 56 of the MGEX Rules & Regulations.
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 including its terms and conditions.
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.
A new product summary is available for clearing firms, bookkeeping software providers, and ISVs. This highlights the futures and options contract specifications and trading details. Additionally, an MGEX memo was sent to clearing members, outlining trading hours, fees and Globex® codes.
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.
About the AJC Industry
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.