CME Group to Launch New South American Soybean (Platts) Futures Contract on September 21st

CHICAGO, Aug. 20, 2020 /PRNewswire/ — CME Group, the world’s leading and most diverse derivatives marketplace, today announced it will launch South American Soybean (Platts) Futures on September 21, 2020, pending all relevant regulatory review periods. This contract will offer market participants a new tool to directly manage exposure to the Brazilian soybean market.

“As Brazil has emerged as a leading producer and exporter of soybeans, regional pricing alternatives have become increasingly important for risk management,” said Tim Andriesen, CME Group Managing Director of Agricultural Products. “Customers have been using our benchmark grain and oilseed products to hedge their global soybean positions for over 80 years, and these new contracts will enhance those products with contracts that reflect Brazilian export prices.”

The new South American Soybean (Platts) futures were jointly developed with B3, one of the world’s largest financial market infrastructure companies. Brazilian Soybean (Platts) futures will be financially-settled based on the SOYBEX price assessment published daily since July 2018 by S&P Global Platts, reflecting the FOB value of Soybeans from the port of Santos in Brazil. The contract will simultaneously track the export price and the basis to U.S. soybeans, offering market participants the ability to trade the spread between these key commodity regions.

“To B3, the launch of this contract is a collective success and another major step in our strategic relationship with CME Group,” points out Louis Gourbin, Head of Commodities at B3. “We are working to make the B3 contract available to the market as soon as possible,” he adds.

Ian Dudden, Global Pricing Director, Metals & Agriculture at S&P Global Platts, said, “We are pleased that CME Group and their customers recognize the important role our independent Brazil FOB Santos Soybean price assessment plays in creating price transparency, which in turn provides opportunities for the provision of risk management tools that bring greater efficiency to the global agriculture markets.”

South American Soybean futures will be quoted in U.S. dollars and cents per metric ton and have a contract size of 136 metric tons. The minimum price fluctuation will be $0.20 per metric ton, with the final settlement price rounded to the nearest $0.01. The new futures contract will be available for trading on CME Globex or through block trades via CME ClearPort, and will be listed by and subject to the rules and regulations of CBOT.

For more information on CME Group’s grain and oilseed product suite, please visit: www.cmegroup.com/soybeans.

For more information about S&P Global Platts agriculture price assessments, please visit: https://www.spglobal.com/platts/en/our-methodology/methodology-specifications/agriculture.

SOURCE: CME Group

About CME Group
As the world’s leading and most diverse derivatives marketplace, CME Group (www.cmegroup.com) enables clients to trade futures, options, cash and OTC markets, optimize portfolios, and analyze data – empowering market participants worldwide to efficiently manage risk and capture opportunities. CME Group exchanges offer the widest range of global benchmark products across all major asset classes based on interest ratesequity indexesforeign exchangeenergyagricultural products and metals.  The company offers futures and options on futures trading through the CME Globex® platform, fixed income trading via BrokerTec and foreign exchange trading on the EBS platform. In addition, it operates one of the world’s leading central counterparty clearing providers, CME Clearing. With a range of pre- and post-trade products and services underpinning the entire lifecycle of a trade, CME Group also offers optimization and reconciliation services through TriOptima, and trade processing services through Traiana.

CME Group, the Globe logo, CME, Chicago Mercantile Exchange, Globex, and E-mini are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board of Trade of the City of Chicago, Inc. NYMEX, New York Mercantile Exchange and ClearPort are trademarks of New York Mercantile Exchange, Inc. COMEX is a trademark of Commodity Exchange, Inc. BrokerTec, EBS, TriOptima, and Traiana are trademarks of BrokerTec Europe LTD, EBS Group LTD, TriOptima AB, and Traiana, Inc., respectively. Dow Jones, Dow Jones Industrial Average, S&P 500, and S&P are service and/or trademarks of Dow Jones Trademark Holdings LLC, Standard & Poor’s Financial Services LLC and S&P/Dow Jones Indices LLC, as the case may be, and have been licensed for use by Chicago Mercantile Exchange Inc. All other trademarks are the property of their respective owners.

Writer: Torrie Sheridan, 765-496-6032, ward121@purdue.edu
Source: James Mintert, 765-494-7004, jmintert@purdue.edu

Related websites:
Purdue University Center for Commercial Agriculture: http://purdue.edu/commercialag
CME Group: http://www.cmegroup.com/

Photo Caption: Farmer sentiment rebounds amidst ongoing COVID-19 concerns. (Purdue/CME Group Ag Economy Barometer/James Mintert)

A publication-quality photo is available at https://www.purdue.edu/uns/images/2020/barometer-june.jpg.

CME-G

SOURCE CME Group

SOURCE CME Group

By Brian Allmer - The BARN

Brian Allmer & the BARN are members of the National Association of Farm Broadcasting (NAFB), the Colorado FFA Foundation, the Colorado 4H Foundation, the Colorado Farm Show Marketing Committee, 1867 Club Board Member, Denver Ag & Livestock Club Member, the Weld County Fair Board, the Briggsdale FFA Advisory Council, Briggsdale 4H Club Beef Leader & Founder / Coordinator of the Briggsdale Classic Open Jackpot Show.