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CME to launch new Black Sea grain futures with Platts

CME to launch new Black Sea grain futures with Platts
From Reuters - November 13, 2017

PARIS (Reuters) - CME Group is to launch next month Black Sea wheat and corn futures based on S&P Global Platts price benchmarks to target the fast-growing exporting region.

The cash-settled Black Sea Wheat FOB (Platts) and Black Sea Corn FOB (Platts) futures contracts will begin trading on Dec. 18, subject to regulatory clearance, the Chicago-based derivatives exchange said on Monday.

The wheat contract is based on the Platts Russian Wheat 12.5 percent protein FOB (free on board) Black Sea Deep Water daily price assessment, while the Black Sea Corn contract is based on the Platts Ukrainian Corn FOB Black Sea daily assessment, CME said in a statement.

The contracts will be denominated in U.S. dollars, have 50 metric tonne lots, and tradeable as blocks with a minimum of five lots.

Like in Australia, where CME this year launched wheat derivatives based on a Platts price index, the Black Sea contracts will be available for trading via CMEs Globex futures platform and for clearing through CME Clearport for off-exchange trades.

The Black Sea contracts would also offer two settlement periods, whereby 12 whole-month contracts and 24 half-month futures contracts are available to trade.

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