A physical commodities market needs to hit a certain size before risk-management tools appear for hedging the underlying financial price risk in the market: it seems ethanol – a gasoline additive – may have reached that critical mass. The Chicago Board of Trade (CBOT) responded in early February to the growing demand for, and production of, ethanol by announcing the launch of an ethanol futures contract. The first six months listed for the physically settled contract will be June through Nov
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