CHICAGO, ILLINOIS, US — CME Group announced on Aug. 28 that it will launch two new wheat spread futures contracts on Oct. 14, pending regulatory review.
The CBOT Wheat — Euronext Milling Wheat No. 2 Spread futures contract and the KC HRW Wheat — Euronext Milling Wheat No. 2 Spread futures contract will each be US dollar-denominated in metric tons and based on the spread between either CBOT Wheat futures prices or KC HRW Wheat futures prices and Euronext Milling Wheat No. 2 futures prices.
“As the wheat trade becomes increasingly global and interlinked, we are pleased to provide our clients with innovative new tools to manage their wheat price exposure more efficiently,” said John Ricci, managing director and global head of Agriculture Products at CME Group. “These new spread futures contracts will eliminate the need to transact and clear on multiple venues, allow clients to trade these products in a single currency and expand access to these important benchmark markets.”
The new spread futures will be listed by and subject to the rules of CBOT. For contract specifications, or for more information on CME Group’s wheat benchmarks, visit the CME website.