Moscow Exchange plans to start Trading in Deliverable Wheat Futures in November

Volga Baikal AGRO News Update, Moscow Exchange plans to start Trading in Deliverable Wheat Futures in November  

The Moscow Exchange plans to start trading in deliverable wheat futures in November this year, Prime reports. According to Arseny Glazkov, Director of the Derivatives Market Department, all the documents are ready, there is a demand for the instrument from the sector, there is also a partner who is ready to become a market maker – a group of companies that includes exporters, ports (name not specified). A number of elevators in the Voronezh Region will become the basis for deliveries under the futures; work with them is in the final stage of testing. In addition, Glazkov said that futures on American and European stock indices would be launched early next year. When asked by Agroinvestor, the press service of the Moscow Exchange replied that there were no other details on futures trading yet.

Trading in deliverable futures is a necessary tool, and it would be very useful for our market, says the CEO of the Institute for Agricultural Market Studies ( IKAR) Dmitry Rylko. “But from the very beginning I expressed great doubts about this basis: now the commercial elevators of the Voronezh region have very small volumes,” he commented to “ Agroinvestor“. According to Rylko, the market maker is likely to be the structure of VTB (“Demetra-Holding”), whose initiative was the basis in the Voronezh region. In the meantime, a non-deliverable futures for Black Sea wheat, launched by the Chicago Mercantile Exchange, is gaining momentum. General Director of the analytical company ” ProZerno“Vladimir Petrichenko reacted with skepticism to the plans of the Moscow Exchange, but added that it is too early to draw any conclusions due to insufficient information about the auctions. The press service of VTB has not yet commented on the information on the possibility of the group’s structure to become a market maker.

As a rule, the issue of purchasing grain is resolved quickly and depends on its quality characteristics, and exchange trading implies a certain unification of quality without taking into account many nuances, so it is not yet clear who this tool is for, says Alexander Grigoryants, General Director of Real Agro. “There are also procedures for concluding contracts, conditions for accreditation, and so on. Probably, large companies interested in serious volumes are ready to go through all this, “he commented to Agroinvestor“. Grigoryants believes that small traders are unlikely to be interested in such a mechanism, but in the future, after a few years, they can start using it.

Source: agroinvestor.ru