The Kansas City Board of Trade (KCBT) had an estimated volumefor the first time this month yesterday, but the Board’s managementis not concerned about the overall lack of trading. The KCBT hasrecognized the problem and is in discussions with its customers onhow it can bring its trading floor more to life, a spokespersonsaid, but others openly wonder if there will be a gas pit at theKCBT much longer.

“We used to trade there, but we don’t anymore,” one broker said.”Business at the KCBT has just dried up, and it isn’t profitablefor us to do business there…I think the root of the problem isthe lack of financially strong locals. The locals could not pushthe market in either direction, and that caused the contract tolose liquidity.

“I think it’s in real danger,” he continued. “I wouldn’t besurprised at all if the contract just faded out.”

The KCBT’s discussion with customers will include a conferencecall on Aug. 24, Candice Bowman, vice president of KCBT marketingsaid. She denied, however, that this conference call was planned asan emergency attempt to bring trading back to the contract. “It’snot out of the ordinary at all. From the first day we startedtrading, we have always kept in close contact with our customersand asked for their feedback. In essence, that conference call isjust another business meeting.”

Bowman said the viability of the contract is not an issue. Whenasked if it was in danger, Bowman said it is way too early for suchthoughts. “I’m kind of shocked that question was asked. The gascontract has been offered for four years. There has been a lot ofeffort put into the contract and a lot of work done within industrycircles, so really a two-week lull is not enough to go on. Thereare lots of different reasons for volume fluctuations, but thathardly means those reasons will form a permanent condition.” Shedeclined to say what reasons caused this latest lack of trading.

The upcoming days may prove crucial for the KCBT gas contract,as September’s reign as the prompt month has only eight days left.”Historically, trading picks up on the last days of trading in agiven month.” Last month, the KCBT had an estimated volume of 383on the last day of trading. “We are certainly hopeful that thismonth will follow the same pattern.”

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