CME Group announced on Tuesday that it will launch in June a new Black Sea Wheat Futures Contract, which will track the export prices of Romania and Bulgaria.

The contract plan announced by in

CME's latest effort to develop grain derivatives is in the critical Black Sea export zone.

CME stated in a notice that the new product will, upon regulatory approval, be tied to Argus Media’s index of export price for wheat with 12.5% protein in the “CVB” zone, which includes the Romanian port Constanta and the Bulgarian Ports of Varna and Burgas.

The trading will begin on June 2nd, it was announced.

After the full-scale Russian invasion of Ukraine, trading interest in previous Black Sea Wheat futures was stifled.

It said that the new contract would be settled in cash, priced in U.S. Dollars, and traded in lots of 50 metric tons, as previously reported by.

It said that the contract would offer both options and futures.

Romania and Bulgaria, members of the European Union, have increased their exports in recent years.

CME's U.S. Corn, Wheat and Soybean futures are benchmarks for global prices. In recent months, the company has launched several new grains and oilseeds products. On April 28, it launched a European rapeseed futures contract that was also linked to an Argus index. (Reporting and editing by Richard Chang; Gus Trompiz, Sybille de la Hamaide)

(source: Reuters)