CME Group, the international derivatives marketplace, announced today that it will introduce two new wheat spread futures contracts on October 14, pending regulatory approval.
The contracts, CBOT Wheat – Euronext Milling Wheat No. 2 Spread futures and KC HRW Wheat – Euronext Milling Wheat No. 2 Spread futures, will be denominated in U.S. dollars per metric ton. They will be based on the price spread between either CBOT Wheat futures or KC HRW Wheat futures and Euronext Milling Wheat No. 2 futures.
“As global wheat trade continues to become more interconnected, we’re excited to offer our clients new tools to more efficiently manage their wheat price exposure,” said John Ricci, Managing Director and Global Head of Agriculture Products at CME Group. “These spread futures contracts will streamline trading by allowing clients to operate in a single currency and trade these key benchmark markets on a single platform.”
The new spread futures will be listed and governed by CBOT rules.