Chicago launching Black Sea wheat and corn contracts


CME Group (Chicago Mercantile Exchange and Chicago Board of Trade) has announced the launch of Black Sea wheat and corn futures contracts based on Platts' price index to begin trading in December 2017, Zerno-Online agency reports. The project’s goal consists in increasing the Group’s presence in the developing export region.

Spot trading starts on December 18. The wheat contract is based on Russian 12.5%-protein wheat, FOB, deep-water ports.

In 2012, CME Group launched spot contracts for Black Sea wheat deliveries, but this project did not become popular because it was based on wheat from different origin countries: Russia, Romania and Ukraine. Traders considered this approach as irrational, reports UkrAgroConsult.

The corn contract will be based on Ukrainian corn. The wheat and corn contract currency is US dollar. The lot size is 50 MT.



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