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Vintage Minnesota: Trading spaces

September 27, 2019 at 12:30PM
September 21, 1973 For much of the day, the grain pit looks like this -a small group of traders, standing around and watching the changing wheat prices being chalked on the big board. October 14, 1973 Mike Zerby, Minneapolis Star Tribune; Minneapolis Sunday Tribune ORG XMIT: MIN2017012318312738
SepT. 21, 1973: For much of the day, the grain pit looks like this — a small group of traders, standing around and watching the changing wheat prices being chalked on the big board. (The Minnesota Star Tribune)

Photos originally published October 14, 1973

The scene looked like it was from a movie — the hustle and bustle of traders (mostly tie-clad men) working the floor, shouting and gesturing. It was calm and chaotic, sometimes both at once.

Welcome to the Minneapolis Grain Exchange in 1973.

At the time, the pace was particularly frenetic — wheat prices had risen above $5 a bushel for only the second time in the history of the exchange thanks to a domestic grain shortage. (The United States had sold about 440 million bushels to the Soviet Union the year before.) It was another moment in the exchange's storied history.

The nonprofit, membership organization, began as the Minneapolis Chamber of Commerce in 1881, formed as a regional cash marketplace to promote fair trade and to prevent trade abuses in wheat, corn and oat. It became the Minneapolis Grain Exchange in 1947 — MGEX for short — as the term Chamber of Commerce started to be associated with civic and social organizations.

Eventually, electronic trading started to become more prevalent, and by 2008 it accounted for more than 70% of the trading volume. Maintaining two trading systems wasn't viable anymore, and that fall the board of directors voted to switch to an all-electronic system. Jobs were lost, and hearts were broken.

"Everyone's being impacted by this decision, and it's extremely emotional," Mark Bagan, then president and CEO of the exchange, said at the time.

Although the move would generate $500,000 in annual savings and revenue increases, money wasn't the only reason why the change was made.

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"This was not a financial decision as it was: How do we grow our marketplace?" Bagan said. Officials had hoped it would strengthen the exchange in the world of round-the-clock trading.

So on Dec. 19, 2008, the Minneapolis Grain Exchange closed the open outcry futures floor. After more than a century, face-to-face trading was a thing of the past.

MGEX is going strong and still trades about 1 million bushels a day — it's just a little quieter now.

Nicole Hvidsten


September 21, 1973 Traders, each representing a company, use these cubicles as offices while they are on the trading floor. October 14, 1973 Mike Zerby, Minneapolis Star Tribune; Minneapolis Sunday Tribune ORG XMIT: MIN2017012318312029
Sept, 21, 1973: Traders, each representing a company, use these cubicles as offices while they are on the trading floor. (The Minnesota Star Tribune)
September 21, 1973 Then the second bell rings, signaling that five minutes remain for trading, and the traders jump into action, above. Below, Blewett closed a deal on a Friday afternoon, the pit's busiest period. October 14, 1973 Mike Zerby, Minneapolis Star Tribune; Minneapolis Sunday Tribune ORG XMIT: MIN2017012318312737
From top: For much of the day, the grain pit looked like this — the calm before the storm. A small group of traders stood around and watched the changing wheat prices being chalked on the big board, which showed the prices at the Chicago market. Traders, each representing a company, used these cubicles as offices while they were on the trading floor. Robbie Renslow was one of 11 board markers — all of them women. Markers started at $2.50 an hour and worked a five-hour day. Clare Blewett, an independent broker, pondered the board in the early afternoon of a trading day. During a hectic trading period, there were days he bought and sold nearly 6 million bushels. Traders jumped to action moments after the second bell rang, signaling that only five minutes remained for trading. (The Minnesota Star Tribune)
September 21, 1973 Above, Clare Blewett, an independent broker, pondered the board in the early afternoon of a trading day. October 14, 1973 October 16, 1975 Mike Zerby, Minneapolis Star Tribune; Minneapolis Sunday Tribune ORG XMIT: MIN2017012318310814
September 21, 1973 Above, Clare Blewett, an independent broker, pondered the board in the early afternoon of a trading day. October 14, 1973 October 16, 1975 Mike Zerby, Minneapolis Star Tribune; Minneapolis Sunday Tribune (The Minnesota Star Tribune)
October 14, 1973 Traders may examine grain samples at tables on the trading floor. The room is lit only with natural light Ñ no over-head electric fixtures Ñ because grain is believed to look different under artificial light. Minneapolis Sunday Tribune ORG XMIT: MIN2017012318311017
Traders could examine grain samples at tables on the trading floor. The room was lit only with natural light — no overhead fixtures — because grain was thought to look different under artificial light. (The Minnesota Star Tribune)
September 21, 1973 Robbie Renslow, a board marker for the Grain Exchange, at her job. Markers start at $2.50 an hour, work a five-hour day. There are 11 of them, all women. October 14, 1973 Mike Zerby, Minneapolis Star Tribune; Minneapolis Sunday Tribune ORG XMIT: MIN2017012318311826
September 21, 1973 Robbie Renslow, a board marker for the Grain Exchange, at her job. Markers start at $2.50 an hour, work a five-hour day. There are 11 of them, all women. October 14, 1973 Mike Zerby, Minneapolis Star Tribune; Minneapolis Sunday Tribune (The Minnesota Star Tribune)
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