The Black Sea Wheat Financially Settled (Platts) Futures contracts are based on the “Russian Wheat 12.5% Fob Black Sea Deep Water” price assessment published by Platts.
Price assessments reflect Russian origin, soft wheat with a protein content of 12.5%, a minimum test weight of 77 kg/hl, a maximum moisture content of 14%, a minimum wet gluten content of 25%, a minimum W number of 180, a minimum falling number of 250 seconds, maximum bug damage of 1.5% and maximum foreign matter content of 2%. Wheat of other origin or with higher or lower protein content may be considered, but normalized back to Russian origin 12.5% protein.
The assessments reflect cargo sizes from handy size to Panamax size, FOB Novorossiisk, loading 28 to 42 days ahead of date of publication. Cargoes are normalized to reflect parcels of 25,000 metric tons, with operational tolerance as per standard market practice. In the absence of representative, FOB Novorossiisk price information, Platts may also refer to other Black Sea ports or CFR prices in relevant destinations and will use prevailing spot freight rates and origin adjustments to normalize to FOB Novorossiisk.
The Final Settlement Price for Black Sea Wheat Financially Settled (Platts) Futures is equal to the arithmetic average of the Russian Wheat 12.5% Fob Black Sea Deep Water price assessments published by Platts for each day of the full calendar month period, rounded to the nearest $0.01.
Yes, there are price limits.
Subject to certain requirements met, such as minimum size, the futures contract can be privately negotiated as a block trade and registered through ClearPort for clearing.
There are minimum quantity and reporting time requirements. The minimum block size is 5 lots, and trades need to be reported within 15 minutes of execution.
Trades may be entered on CME ClearPort 6:00 PM ET Sunday to 5:45 PM Friday CT, with a 60-minute pause each day from 4:00 PM to 5:00 PM CT.
All trades executed through 4:00 p.m. U.S. Central Time will be considered today’s trade.
The Black Sea Wheat Financially Settled (Platts) Futures Contracts will have a Spot Month Limit of 6000 contracts (3000 for May). Single Month Accountability Level and All Month Accountability Level are both set at 6,000 contracts.
The Black Sea Wheat Financially Settled (Platts) Futures are listed over 15 consecutive months.
Yes, you can apply for a hedge exemption. Market participants may be eligible to receive an exemption from Position Limits in accordance with Rule 559 based on having bona fide hedging positions (as defined by CFTC Regulation §1.3(z)(1)), risk management positions and/or arbitrage and spread positions. To obtain an exemption application or for further information on the exemption application process, please contact us at Hedgeprogram@cmegroup.com.
There are various ways you can begin trading these contracts depending on your situation, but this is the simplest and most straightforward process. Contact firstname.lastname@example.org or any of the Inter Dealer Brokers (IDBs) that service this market and they will guide you along.
Step 1: Register on CME Clearport
Step 2: Appoint an Inter Dealer Broker (IDB) that services this market
Step 3: Request your CME Group Clearing Firm to permission your chosen IDB for trade submission.
Contact your Clearing Firm or for more help, contact: email@example.com
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