Denver-based PanXchange launched an industrial hemp trading exchange Aug. 1, building off the benchmark pricing platform the company unveiled to the newly legal industry in January. The main idea, as a nascent marketplace begins to gel in the U.S. is to allow “producers, processors, trade houses and end-users to participate in a transparent and efficient cash market for industrial hemp products.”
CEO Julie Lerner and the PanXchange team developed the commodities trading exchange eight years ago with a straightforward goal: to bring together disparate actors in a given market. The company has built and managed trading platforms for corn, grains, frac sand and other commodities markets.
“We wanted to address the lunacy of the opacity and fragmentation in every single commodity market, given the technology we have today,” Lerner tells Cannabis Business Times. “It’s really a commodity trader’s job just to be on the phone all day long—trying to find out where the bids are, where the offers are, what the justification costs. Why can we not bring everybody into one unified place for instant market access and price discovery?”
With the hemp exchange launch, PanXchange plans to be that place. The tremendous market demand in the diverging cannabis and hemp markets in the U.S. got Lerner thinking about opportunities and gaps.
“We looked at cannabis before, and it just doesn’t work as a commodity,” she says. “Cannabis is going the way of branding and vineyards and so forth. We deal in the generic world of quality specifications.”
Then the 2018 Farm Bill came along.
To read the full story, click here.