CME Group and Euronext Introduce Dual Wheat Futures Contracts to Address Global Supply Concerns

In response to the ongoing supply concerns in the global wheat market, the CME Group and Euronext exchanges have announced plans to launch dual futures contracts. These contracts will focus on tracking the price differential between wheat futures listed on the Chicago Board of Trade (CBOT) and Euronext’s milling wheat futures. Two versions of these contracts will be introduced, one cleared and traded on the CME platform in US dollars, and another cleared and traded on Euronext’s platform in euros. Notably, these contracts will provide previously unavailable trading opportunities for investors who do not have access to both the CBOT and Euronext platforms. The new contracts are currently pending official approval, with some further details yet to be confirmed. This move comes after the CME Group shut down its European wheat and corn futures offerings in 2018 due to low levels of activity. However, recent events, including weather-related challenges and the ongoing conflict in Ukraine, have highlighted the importance of wheat supply management, leading to renewed interest in the product.