SAN MATEO, CA, July 28, 2005 â HedgeStreet Inc. today announced that its members can now trade Hedgelets to take positions on the widely-watched USDA corn and soybean production forecasts. HedgeStreet Inc. is the first U.S. government-designated online market that lets traders directly buy and sell innovative financial instruments based on economic events.
HedgeStreet now offers monthly Yes/No contracts based on the estimated corn and soybean production forecasts released by the USDAâs National Agricultural Statistical Service (NASS). The crop production reports are carefully monitored by commodity futures traders and have a direct impact on prices. The corn and soybean reports are released by the United States Department of Agriculture on a monthly basis from August through November as well as in January.
Said John Nafeh, CEO of HedgeStreet: "Corn and soybeans are highly sought-after commodities used in thousands of food items and industrial applications. By trading these new Hedgelets, HedgeStreet members can offset risks associated with rising and/or fluctuating corn and soybean prices or speculate on the direction and degree production forecasts will change."
HedgeStreet also announced that it has signed an agreement with Jigsaw Commodities, LLC to act as a marker maker for its new corn and soybean production Hedgelets.
Said Peter Kordell, Senior Trader and Owner of Jigsaw Commodities, LLC: "We are very excited to have teamed up with HedgeStreet since we believe these innovative corn and soybean production contracts will greatly benefit our customer base specifically and the agribusiness community in general."
Kordell noted that unlike industrial production, where output is fairly certain, agricultural production fluctuates markedly due to weather, disease and other random factors. "A single report can completely reverse the price trend of corn and soybeans for the rest of the season. These new Hedgelets provide a new tool to directly hedge the risk associated with the specific report -- rather than the traditional ways to hedge commodity risk which have so many other pricing factors to consider," he added.
HedgeStreet is available to any qualified individual with a $100 initial deposit and an Internet connection, and is currently offering 30 days free trading to new members.