Global derivatives and commodities exchange CME Group is planning to launch a South American Soybean (Platts) Futures contract on 21 September.
The contract would offer participants a new tool to directly manage exposure to the Brazilian soyabean market.
“As Brazil has emerged as a leading producer and exporter of soyabeans, regional pricing alternatives have become increasingly important for risk management,” said Tim Andriesen, CME Group managing director of agricultural products, on 20 August.
“Customers have been using our benchmark grain and oilseed products to hedge their global soyabean positions for over 80 years, and these new contracts will enhance those products with contracts that reflect Brazilian export prices.”
The new South American Soyabean (Platts) futures contract had been jointly developed with financial market infrastructure company B3. It would be based on the SOYBEX price assessment published daily by S&P Global Platts, reflecting the FOB value of soyabeans from the port of Santos in Brazil.
The contract would track the export price and the basis to US soyabeans, allowing participants to trade between these key commodity regions.
The contract would be quoted in US dollars and cents per tonne and have a contract size of 136 tonnes. The minimum price fluctuation would be 20 cents/tonne, with the final settlement price rounded to the nearest cent. It would be available for trading on CME Globex or through block trades via CME ClearPort.