PanXchange Launches Industrial Hemp Pricing
January 24, 2019
Pricing data will aid in maturing the market and positioning
industrial hemp as a promising new commodity
DENVER–(BUSINESS WIRE)–lt;a href=”https://twitter.com/hashtag/hemp?src=hash” target=”_blank”gt;#hemplt;/agt;–PanXchange, a Denver-based OTC physical commodity exchange and price
reporting provider, today successfully launched its industrial hemp
indices, becoming the first company to offer such pricing data to the
market. PanXchange now delivers spot market pricing to its members,
publishing on a monthly basis, and plans to launch trading capabilities
in Q3 of this year.
Prices will be offered for the following hemp
products:
- FOB Portland, Oregon Hemp Biomass
- FOB Portland, Oregon Crude Oil
- FOB Denver, Colorado Hemp Biomass
- FOB Denver, Colorado Crude Oil
- FOB Lexington, Kentucky Hemp Biomass
- FOB Lexington, Kentucky Crude Oil
While there have been other attempts to launch hemp trading, those
efforts ultimately fizzled partially because of their nonoptimal timing.
With the signing of the 2018 Farm Bill on December 20, 2018, the
industrial hemp industry is now primed for a period of rapid growth.
Previously, despite industrial hemp’s wide array of end uses, including
paper products, textiles, plastics, cannabidiol (CBD) and construction
materials, it had been outlawed since the 1970s. The increased product
supply and the 2018 Farm Bill’s new federal distinction between hemp and
marijuana have paved the way for hemp to be viewed as a commercial
commodity. United States industrial hemp production has increased on an
exponential scale, growing from 9,770 acres planted in 2016 to more than
25,000 acres planted in 2017. While the official figures have not been
published by the USDA for 2018, preliminary estimates forecast similar
growth to what was seen between 2016 and 2017.
PanXchange CEO Julie Lerner commented, “We’re excited to bring
transparent pricing and instant market access to another new commodity,
particularly a budding commodity like hemp that is just now establishing
a legitimate market. The industrial hemp market is brimming with
potential, and given our deep commodity experience and track record in
nascent markets like frac sand, PanXchange is the perfect company to
provide this market structure solution that commercial producers have
been looking for.”
Hemp becomes PanXchange’s second U.S.-focused commodities market, after
the launch of frac sand in 2017. PanXchange was the first company to
create a market in frac sand, and saw tremendous growth in 2018, with
its client base presently representing 45 percent of all sand traded (on
and offline). PanXchange’s hemp market will follow the same blueprint as
frac sand. If interested in learning more about PanXchange’s industrial
hemp products, please contact info@panxchange.com.
About PanXchange:
PanXchange is an award-winning OTC physical commodity trading platform
that allows buyers and sellers to negotiate specific details of a trade,
including the location and timing of delivery and the exact quantity and
quality of the commodity. In October 2017, PanXchange successfully
launched the first ever platform for the 125 million ton proppant market
(frac sand), and began issuing the industry’s first official price
assessment (benchmark) two months later. Based in Denver, CO, the
company has also been live in East Africa for three years, offering the
negotiation and trade of more than 30 different agricultural
commodities, and opened its fifth location in Singapore in 2018.
PanXchange is protected by two U.S. patents, with three more pending,
and in 2018 was selected by CIO Outlook as a Top 10 Trading Solution
Provider, as well as Barchart’s Startup Exchange winner. For more
information, contact info@panxchange.com.
Contacts
Lorna Kiewert
3Points Communications
(312) 725-7950, Ext. 1
Lorna@3ptscomm.com