Softwood and Hardwood Pulp futures and options are based on key industry indexes by FOEX Indexes Ltd. and trade exclusively on the CME Globex electronic trading platform virtually 24 hours a day. FOEX Indexes Ltd. is a private, Finland-based independent company that specializes in providing audited, trademark-registered pulp and paper price indexes.
FOEX indexes are widely used in the global forest products industry as benchmarks for cash market transactions and over-the-counter (OTC) trading. The PIX NBSKP Europe Index provides the benchmark price for northern bleached softwood kraft pulp (NBSKP), the largest category of market pulp in the European region − the largest consuming region for NBSKP market pulp − supplied from either North American or European sources to their European buyers. The PIX BHKP Europe Index represents the benchmark price for bleached hardwood kraft pulp (BHKP) in the European region.
This guide will further explain how these contracts work through various hedging examples. It will also give you the contract specifications you need to start trading.