SAO PAULO, Nov 1 (Reuters) - Brazil could have its BAB

over-the-counter (OTC) market for soy and corn in place before

the end of the year, the new market's CEO said on Friday.

BAB has been given the green light from Brazil's securities

commission, CEO Eric Cardoni told reporters.

Backed by local railway operator Rumo ( RUMOF ), BAB was

created to allow hedging by local traders and farmers to better

reflect Brazilian market prices, Cardoni said.

Grain prices in Brazil, the world's top soy producer and one

of the largest corn farmers, often diverge from those traded in

Chicago because of different crop periods and logistics costs.

Cardoni said the OTC market, in which securities trade

without a centralized exchange, will trade contracts in

Brazilian reais and could achieve trade equivalent to 24 million

metric tons of grains by the end of its third year.

The amount would represent almost half of the expected soy

output in Brazil's top grain-producing state, Mato Grosso, in

2024/25.

Cardoni added that 15 companies, most of them grain traders,

were seeking approval to trade on BAB.