The CME has today issued a press release on the launch of her new wheat contract on EU wheat. Here my free translation:
"The CME Group, which shared world's largest and most diverse derivatives exchange, today, that she will launch futures and options contracts for wheat from the European Union. Trading is to begin on September 12, 2016 if there are any questions of regulatory authorities. The contracts are subject to the terms and conditions of the Chicago Board of trade (CBoT).
The new Weizenfutures and options are the result of extensive surveys of economic operators and consumers, want the risk control instruments that best reflect the situation on the physical market. The wheat financial instruments are quoted in euro and in approved warehouses allow physical delivery, which relate to the central place of delivery Rouen in France. Warehouse receipts are allocated to the delivery locations in many places in France, allowing the delivery of the goods at any time after the last day of trading.
The Managing Director for agricultural products of the CME Tim Andriesen says. "Our contracts on soft red winter and hard red winter on the CME are already the lead markets for the global grain industry." They facilitate the hedging of price and a robust parallel market for hedgers of throughout the world. The addition of EU Weizenfutures and options complete the CME Globex platform for this risk management.
For the EU Weizenfutures, the same process will be applied as he already successfully works with the other CME futures. At the same time, operators benefit from various arbitrage opportunities, bringing also margin benefits under certain circumstances. Wheat traders of all over the world already now have access to all North American wheat futures on the Globex trading system.
Steve Campbell of Louis Dreyfus United States was involved in the development of the contract specification of the CME-EU Weizenfutures and welcomes the CME standards in the delivery process, which facilitates its hedging. As global grain and Agrarkaufmannmanagt sure he his margins in all CME financial instruments. The new EU wheat future, together with the soft red winter and hard red winter wheat on a trading platform is from the outset have sufficient liquidity and provide a reliable instrument for its international business.
The delivery of the wheat contract will be through the issuance of warehouse certificates from approved stockists, who reside in the major wheat growing regions of France. Buyers of the certificates have the opportunity and flexibility to sell the certificate, rather than to pick the wheat. Here, only the administrative costs incurred.
A contract represents the amount of 50 tonnes of EU wheat with at least 10.5% protein and a minimum number of cases by 170 sec. According to Hagberg table, as well as the specific weight of at least 74 kg / St The first month of delivery is the date of December 16, as well as other seven maturities of the following months of March, may, September and December.
The CME contracts on EU wheat are time for e-commerce through the Globex platform from Monday to Friday between 10:30 and 18:35 clock Paris tradable. The options are available on the CME platform in the time from 08:30 until 11:35 h Chicago time. (15:30 to 18:35 o'clock Paris time)
Currently twelve French stockholder have requested an application for accreditation as a CME delivery site."
