- What product was launched?
- What is the regulatory jurisdiction of South American Soybean futures?
- What is the underlying reference price?
- What is the Platts Soybean FOB Santos assessment?
- How is the final settlement price (the floating price) of the futures contract calculated?
- How does CME Group settle the futures on a daily basis?
- Are there price limits?
- How can the futures contract be traded?
- The futures contract is available to trade as a block. How does that work?
- What are the requirements for a block trade?
- What are the hours for trade entry on CME ClearPort for clearing?
- Are trades executed after 1:20 p.m. Central time (CT) for today or tomorrow’s trade?
- What are the position limits?
- What is the listing cycle?
- I am a bona fide hedger and need to exceed position limits. Can I apply for hedge exemptions?
- How do I start trading and clearing this contract?
- B3, the Brazilian financial exchange, also has a soybean futures contract. How does that contract relate to the CME Group South American Soybean futures contract?
1. What product was launched?
CME Group has launched the FOB Santos Soybeans Financially Settled (Platts) futures contract – abbreviated as South American Soybean futures – on the CBOT exchange.
The contract size is 136 tons and quoted in U.S. dollars and cents per ton. The contract tick size is $0.20 per ton (a tick value of $27.20 per contract). The commodity code is SAS.
2. What is the regulatory jurisdiction of South American Soybean futures?
The South American Soybean futures contract is listed on the CBOT and cleared by CME Clearing in the United States. The regulator is the CFTC.
3. What is the underlying reference price?
The futures contract is based on SOYBEX FOB Santos, Brazil price assessment published by Platts each business day. The Platts code for the assessment is SYBBB000.
4. What is the Platts Soybean FOB Santos assessment?
The price assessment reflects the following characteristics:
Origin and quality: Brazilian-origin soybean specification with oil content of 18.5% and a standard protein level of 34.5%; other qualities may be considered, but would be normalized back to the reference quality.
Cargo size: Assessment reflects a typical cargo size of 60,000 mt, +/- 10% operational tolerance.
Delivery location: FOB Santos, Brazil
Loading period: Assessment reflects product loading one calendar month forward. This will roll to the next month on the first publication day after the 15th of the current month. For example, from July 16 – August 15, Platts will assess parcels loading over September, while from August 16 – September 15, Platts will assess parcels loading over October.
5. How is the final settlement price (the floating price) of the futures contract calculated?
Daily Settlement:
- Month in Averaging Period: During the 15-day averaging period, broker estimates will be incorporated into the settlement calculation until the last day, when the contract will settle to the Platts assessment average of those previous 15 days.
- Forward Curve: Prices will consider broker curves and internal trading activities compiled by CME.
Final Settlement:
- Final settlement shall be the average of all Platts published assessments from the 1st calendar day in the month prior to the contract month to the 15th calendar day of the month prior to the contract month.
6. How does CME Group settle the futures on a daily basis?
CME Group will provide daily settlement prices for listed South American Soybean futures months. The settlements will be determined based on broker forward curves.
7. Are there price limits?
Yes, there are price limits on CME Globex. The price limits follow the same biannual price limit update methodology as the other CBOT Grain and Oilseed products. To see current price limits, please visit the price limits page.
8. How can the futures contract be traded?
The futures contract is available for trading on the CME Globex electronic trading platform and for submission for clearing via CME ClearPort.
9. The futures contract is available to trade as a block. How does that work?
Subject to certain requirements met, such as minimum size, the futures contract can be privately negotiated via brokers as a block trade and submitted into CME ClearPort for clearing.
10. What are the requirements for a block trade?
There are minimum quantity and reporting time requirements. The minimum block trade size is five contracts, and trades need to be reported by the broker within 15 minutes of execution.
Block trade participants need to be classified as Eligible Contract Participants (ECP) to engage in block trades. The definition of an ECP can be found in section 1a(18) of the Commodity Exchange Act.
11. What are the hours for trade entry on CME ClearPort for clearing?
Sunday: Opens 5:00 p.m. CT
Monday – Friday: Closes each day at 5:45 p.m.
Monday – Thursday: Opens each day at 6 p.m.
12. Are trades executed after 1:20 p.m. Central time (CT) for today or tomorrow’s trade?
All transactions on CME Globex and on ClearPort through 4:00 p.m. CT will be considered for that trade date.
13. What are the position limits?
14. What is the listing cycle?
18 monthlies.
15. I am a bona fide hedger and need to exceed position limits. Can I apply for hedge exemptions?
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), 17 CFR 1.3(z)), risk management positions and/or arbitrage and spread positions.
To obtain an exemption application or for further information on the exemption process, contact us at Hedgeprogram@cmegroup.com.
16. How do I start trading and clearing this contract?
Contact your clearing member or sas@cmegroup.com to get more information on getting set up to trade the contract on CME Globex and/or as a block on CME ClearPort. Details are also available at cmegroup.com/sa-soybeans.
17. B3, the Brazilian financial exchange, also has a soybean futures contract. How does that contract relate to the CME Group South American Soybean futures contract?
Like the South American Soybean futures contract listed at CME Group, the B3 contract is financially settled to the FOB Santos, Brazil Soybean price assessment published by Platts each business day. Their contract is listed and cleared by B3. It is not fungible with the CME Group contract.
More about South American Soybean futures
Get more information about the South American Soybean futures contracts at CME Group.
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
