The beauty of modern commodity markets is that you can trade almost anything: gold, grain, cryptocurrencies etc. Besides, speculators could expand their money-making opportunities with new trading instruments. Soon, hemp may be a tradable commodity on Seed Commodities Exchange (Seed CX) based in Chicago. It will operate trading platforms designed in partnership with GMEX Group, a trading software provider. This trading platform for industrial hemp is subject to regulatory approval from the US Commodity Futures Trading Commission. The startup hopes to launch the first industrial hemp derivative contracts by the time the farming season starts in May. Meanwhile, a lot of farmers and traders have signed up to use Seed CX in trading hemp seed, whole hemp plant, and whole hemp plant extract. Interestingly, founders of Seed CX had to send 11,000 emails, travel 46,238 miles, and meet with 604 investors. As a result, the authors of the extravagant idea raised $3.42 million. It is no surprise that most of the investors refused to make their names public.
In 2015, the use of cannabis was declared legal in the US capital city in addition to other towns in the US. The authorities legalized storing and using marijuana for medical purposes. However, buying, selling, and using cannabis in public places are forbidden. Hemp farming and processing is federally legal under the Agricultural Act of 2014, but only in states with the proper infrastructure, in particular in 26 states. Currently, there are around 100 hemp farmers in the US and 150 hemp processors. As the hemp farming is expanding on a large scale, many traders believe Seed CX will become a mainstream market.
