CHICAGO, May 2 (Reuters) - Longer trading sessions at the benchmark Chicago grain futures markets will raise costs for U.S. grain merchants and could put some at a competitive disadvantage, the nation's largest grain group said on Wednesday in response the CME Group's plan for 22 hours of trading.
The CME Group on Tuesday said beginning May 14 it will expand grain futures trading to 22-hour sessions, a move it said would give users near round-the-clock access to the markets. The move also would compete directly with the InterContinentalExchange , which will launch competing grain contracts.
The National Grain and Feed Association said there was "significant concern" about the market being open when the U.S. Agriculture Department releases its crop reports.
"In particular, accessing those reports is not generally a quick and simple process," the NGFA said in a statement. "There may be competitive advantages for firms or individuals who are able to access and process report information earlier than others."
A NGFA spokesman was not immediately available to comment on what types of traders would have the advantage on report days, which typically attract the heaviest trading volume and produce the wildest price swings.
The CME's move to 22 hours of trading came shortly after ICE said it will list look-alike wheat, corn and soy contracts that trade on a 22-hour basis.
NGFA, which has thousands of members from grain facilities, food processors, biofuel makers and exporters, also said it would be asking the CME for more details about its plans for price settlement and other matters.
CME has said it will move to a blended settlement procedure, using prices from both pit and electronic trading, beginning in June. The exchange initially planned a transition to the new settlements for both grains and livestock futures in March and April but that plan was met with strong opposition from floor traders.
