European exchange Euronext has partnered with Argus over the launch of cash-settled Ukraine Black Sea wheat futures, head of commodities at Euronext Nicholas Kennedy said today at the Paris Grain Day event.
The product will be offered on Euronext's new cash-settled platform and will allow market participants to financially settle against an index rather than take physical delivery of the wheat traded.
Argus Ukraine wheat price assessments will be used to underpin settlement prices of the futures contracts. Argus assesses daily Ukraine wheat prices on fob and cpt bases, covering feed, 11.5pc and 12.5pc grades.
"For us it is clear that alongside our historic proxy for European wheat which has grown tremendously over the last few years and become the benchmark for European wheat, we have got to capture also the Ukrainian and Black Sea element and now we can actually do that", Kennedy said.
Euronext already has plans to launch durum wheat and feed barley cash-settled products on its new platform due for introduction this year, as part of a strategy to significantly expand its European agriculture derivatives service. Euronext's French milling wheat futures are already a key reference for European wheat markets.
