Euronext Launches New Wheat Contract Amidst Rising Prices

Euronext, the Eurozone’s paramount Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term, has unveiled plans to launch a new premium milling wheat no. 3 contract, which is slated to become available in the beginning of March.

Earlier this week, Euronext announced its trading volumes for the month ending January 2015, in which average daily transaction value on their cash order book increased by 31% from last year to roughly €8,630 million (9,886.6 million USD).

The new wheat contract on Euronext’s platform will aggregate the exchange’s expertise in milling wheat in conjunction with the acute needs of stakeholders and market participants in the agrifood industry.

Euronext has forged a role as one of the main benchmarks for the wheat industry in Europe. In particular, the new premium wheat no.3 contract will strengthen this position and will have a healthy demand given the recent desires expressed in a number of 2014 surveys conducted by Euronext.

Furthermore, the new contract meets additional criteria:

• Protein content: minimum 11%
• Hagberg falling number: minimum 220 seconds
• Minimum 76 kilos per hectoliter

Physical delivery sites for the new contract will include silos operated by Euronext’s partners of reference for milling wheat, i.e. Sénalia, Socomac in Rouen and Sica Nord-Céréales in Dunkirk. Moreover, this will also include new silos in Nantes and Bordeaux operated by InVivo, France’s largest agricultural cooperative.

According to Laurent Martel, General Manager, Director, Agricultural Division inVivo, in a recent statement on the partnership, “We are delighted to partner as delivery silo in the launch of Euronext's new milling wheat contract. Our aim is to better meet industry demand for premium quality milling wheat. We hope that InVivo will contribute to the success of this contract.”

“Our milling wheat futures contract is now the European benchmark for prices on physical delivery markets. Over the past 15 years, this contract has built a name for itself based on our in-depth understanding of industry needs and a focus on international growth. Today our premium milling wheat no. 3 contract is fresh proof of our commitment to stakeholders in agriculture and will help strengthen Euronext’s positioning as a major player in commodities markets,” added Anthony Attia, CEO of Euronext Paris, in an accompanying statement.

“The launch of our new premium milling wheat no. 3 contract reflects our commitment to providing greater flexibility and transparency to our partners in the French and European grain industry, with whom we work closely. By raising the bar for wheat quality and expanding the number of physical delivery points, we are actively contributing to a quality-focused shift in industry standards,” reiterated Olivier Raevel, Head of Commodities at Euronext.