CHICAGO, ILLINOIS, US, and SÃO PAULO, BRAZIL — CME Group and B3 SA on June 22 announced an agreement to jointly develop risk management products for both Brazilian domestic and global market participants. Under the terms of the agreement, CME Group and B3 will work together to launch futures on Brazilian soybeans in the third quarter of 2020, pending regulatory approvals.

The new futures contracts will build on the existing cooperation agreement CME Group and B3 have had in place since 2007 for technology services and cross-listing of futures products. The new, expanded agreement also includes the extension of the existing B3 cross-listed mini-soybean futures and options contracts, and will allow the companies to evaluate potential products related to South American soybean and soybean-related products. 

“Brazil is an important player in the global grain and oilseed trade and is expected to export over 83 million tonnes of soybeans this year alone,” said Tim Andriesen, managing director of agricultural products at CME Group. “These new futures contracts respond to the demand from our customers for regional hedging and price discovery tools that complement the deep liquidity of our benchmark grain and oilseed futures and options.”

Louis Gourbin, superintendente of commodities at B3, added, “This expanded strategic partnership will bring even greater benefits to our Brazilian customers by providing a benchmark specifically related to Brazilian soybean export prices. As our relationship grows, we are excited to explore joint risk management products that will bring additional South American-based trading solutions to the global marketplace.”