South America has become a major producer and exporter of agricultural products and the home to many users of our global benchmark risk management products. CME Group and B3 have combined efforts to develop a suite of South American regional products to manage risk in this region. The initial focus of the partnership will be on developing a South American soybean contract that will target international customers trading on CME and then another focused on Brazilian customers trading on B3.
While our US-based Grain and Oilseed futures contracts are the global benchmarks for price discovery and risk management, we continue to add regional products like this to provide market participants with a full suite of risk management tools.
Tentatively, we expect these to be available for trade in Q3 of this year.
CME has a suite of free QuikStrike tools to calculate theoretical prices and Greeks on CME Group options, chart volatility, and correlations, and to test strategies in simulated markets.
CME Group first listed cleared Fertilizer swaps in 2011 for Urea, UAN, and DAP. However, not all market participants could access the cleared swaps. Since June 2019, Fertilizer futures have been listed and available to improve market access.
Launched in January of this year, Block Cheese futures and options are the latest agricultural products launched by CME Group. They have already garnered a great deal of open interest among dairy risk managers. Read Block Cheese Futures & Options - A New Hedging Tool, written by Sara Dorland of Ceres Dairy Risk Management to learn more. The white paper uses real-life examples to demonstrate the importance of utilizing hedging tools that more precisely represent the underlying markets for which you are managing risk and the difference in hedging effectiveness when you do not.
Stay on top of all ag-related news by following the CME Group Agriculture Showcase Page on LinkedIn or CME Group on Twitter:
Q1 Black Sea Wheat and Corn futures and options volumes reached 68K contracts (ADV 1.1K), up 35% over Q4 2019.
Q1 Black Sea Wheat futures traded 58K contracts (ADV 935), a 75% increase over Q4 2019.
At quarter-end, Black Sea Wheat open interest exceeded 25K, mostly in new crop out to December 2020.