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Aug. 17, 2004
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MINNEAPOLIS GRAIN EXCHANGE ANNOUNCES ELECTRONIC TRADING HOSTING ARRANGEMENT WITH CHICAGO BOARD OF TRADE - August 17, 2004

MINNEAPOLIS– The Minneapolis Grain Exchange (MGEX) announced today that the Chicago Board of Trade (CBOT) will host electronic trading of MGEX’s financially settled agricultural futures and options on e-cbot ® powered by LIFFE CONNECT ® . The tentative launch date for the products under this new arrangement is December 2004.
MGEX will list National Corn Index (NCI), National Soybean Index (NSI), Hard Red Winter Wheat Index (HRWI), Soft Red Winter Wheat Index (SRWI) and Hard Red Spring Wheat Index (HRSI) futures and options on e-cbot ® powered by LIFFE CONNECT ® . Contract rules for SRWI and HRSI contracts were approved June 1 by MGEX ownership.

“e-cbot ® powered by LIFFE CONNECT ® is an excellent trading venue for our financially settled agricultural futures and options,” said Kent Horsager, MGEX president and chief executive officer. “MGEX customers will benefit from the system’s trading functionality, wide distribution and simple access alternatives.”

"These financially settled index futures and options and their deliverable counterparts complement each other by offering traders and hedgers many new opportunities for basis and spread trading," said Ray Lottie, chairman of the MGEX board of directors and manager of cereal and eastern grain operations for General Mills.

MGEX’s agricultural index contracts settle financially each calendar month to a three-day average of the corresponding spot index. Data Transmission Network (DTN) collects elevator bids daily for corn, soybeans, soft red winter wheat, hard red winter wheat and spring wheat, to arrive at the spot indexes to which the futures contracts settle at the end of each month. The contracts reflect country-origin pricing, and, as there is no delivery alternative, futures and options contracts expire simultaneously.

MGEX, established in 1881, is the only market for hard red spring wheat, Hard Red Winter Wheat Index (HRWI), National Corn Index (NCI) and National Soybean Index (NSI) futures and options. www.mgex.com
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