Australia’s biggest grain trader CBH Group acknowledged this week that the use of Chicago wheat futures as a reference in its risk management practices, together with generally unfavorable market conditions including a drought in Australia and China’s anti-dumping investigations on barley, had contributed to a record $119.259 million loss for its “Marketing and Trading” business unit in the 2019 financial year.

CBH explained in its report that it was using “Chicago Board of Trade (CBOT) wheat futures as a risk management tool…