CME to launch new Black Sea wheat contract in June

CME Group will launch a new Black Sea wheat futures contract in June that will track export prices in Romania and Bulgaria, the financial markets operator said on Tuesday. The announcement, confirming plans for the contracts reported by Reuters in March, marks CME’s latest attempt to develop grain contracts in the crucial Black Sea export zone. The new product, subject to regulatory approval, will be linked to the Argus Media Export Price Index for 12.5% protein wheat in the “CVB” zone covering the Romanian port of Constanta and the Bulgarian ports of Varna and Burgas, the CME said in a market notice. Trading will begin on June 2, the notice said. The group suspended its previous Black Sea wheat futures based on a Russian price index following the outbreak of war in Ukraine. According to the company, the new contract will be settled in cash, priced in US dollars and traded in batches of 50 tons, in line with information previously published by Reuters. According to the ...