Effective and efficient risk management solutions for participants in the European wheat marketplace
The physically-delivered, Euro-denominated EU Wheat futures contract is a natural complement to the Soft Red Winter (SRW) and Hard Red Winter (HRW) Wheat futures contracts listed on CBOT. These products, available in one marketplace, represent some of the world’s most important wheat markets. Market participants looking to manage the risk associated with producing, storing, merchandising, processing, and trading EU Wheat now have an alternative listed at the long-established global market leader for wheat derivatives, and backed by the financial integrity of CME Clearing. EU Wheat futures and options will be available to trade electronically on CME Globex. Options will also be available on the Chicago trading floor.
The foundation of the EU Wheat futures contract is its robust delivery mechanism, which features Rouen as the reference pricing market with delivery points across key wheat production areas. By allowing wheat to be held on a warehouse certificate, the contract encourages a forward price curve similar to those discovered in the CBOT SRW and HRW Wheat futures markets. This allows EU Wheat futures to provide effective tracking of the underlying cash market through time, better convergence, and subsequently, valuable price risk management capabilities.
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