May 4, 2018 / 9:26 PM / a year ago

CME Group considers raising corn, soybean storage rates

CHICAGO, May 4 (Reuters) - Exchange-operator CME Group Inc is weighing an increase in the storage rates for its corn and soybean futures to address concerns the contracts’ prices are not accurately reflecting the underlying U.S. cash grain markets.

* CME may raise the fixed maximum storage rate that regular warehouses can charge holders of its outstanding shipping certificates, according to a notice the company sent to customers.

* CME contacted market participants for their views, and most support an adjustment to contract storage rates to make sure that futures converge with cash prices, the notice says.

* The current maximum storage rate that regular warehouses can charge is about 5 cents per bushel per month.

* Traders told Reuters in February that CME was talking with them about potential adjustments to the contracts. (Reporting by Tom Polansek)

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