The CME Group, a leading international derivatives marketplace, has announced plans to launch two new wheat spread futures contracts on October 14, pending regulatory approval. The new contracts include the CBOT Wheat – Euronext Milling Wheat No. 2 Spread futures and the KC HRW Wheat – Euronext Milling Wheat No. 2 Spread futures. Both contracts will be U.S. dollar-denominated in metric tons and will track the price spread between either CBOT Wheat or KC HRW Wheat futures and Euronext Milling Wheat No. 2 futures.
John Ricci, Managing Director and Global Head of Agriculture Products at CME Group, emphasized the benefits of these new tools: “As the wheat trade becomes increasingly global and interlinked, we are pleased to provide our clients with innovative new tools to manage their wheat price exposure more efficiently. These new spread futures contracts will eliminate the need to transact and clear on multiple venues, allow clients to trade these products in a single currency, and expand access to these important benchmark markets.”
The new spread futures contracts will be listed by CBOT and governed by its rules.
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