Derivitives exchange CME Group (CME) said Monday that on Aug. 1 it will begin a program to encourage electronic trading of CME and Chicago Board of Trade agricultural products by Latin American agriculture companies.

CME's new program, called Latin American Commercial Incentive Program, aims to encourage commercial agricultural hedgers to receive discounted trading fees for electronic trading.

"We hope that this program will incentivize [Latin American] agricultural companies to trade electronically," said Mary Haffenberg, spokeswoman for CME.

Haffenberg said agriculture companies can get, for example, discounts of 22% for electronic trading of the soybean futures contract on CBOT.

A nonmember customer currently pays $1.81 a side to buy or sell a soybean futures contract. Qualified participants in the new program will pay $1.41, she said.

CME didn't provide details about the number of companies already trading or hedging or their targets for the program.

Steve Cachia, a grains analyst at consultancy Cerealpar, said hedging and electronic trading is limited mainly to large exporters and multinationals. "There is space for more participation," he said.

Brazil is the world's No. 2 soy trader after the U.S., and Argentina is the largest soymeal exporter.

-By Tony Danby, Dow Jones Newswires; 55-11-2847-4523; Anthony.Danby@dowjones.com