Euronext to launch Black Sea wheat, corn futures with Romania delivery in 2027

ROTTERDAM: Euronext will launch Black Sea wheat and corn futures next year with physical delivery to the port of Constanta in Romania to expand its European grain business, which has historically been tied to France, the exchange said on Friday.

Euronext has long sought ways to reflect rising Black Sea grain trade, including previous plans to add delivery in Romania to its existing French-based corn contract.

“We have seen a shift, and we have seen the eastern part of Europe taking a bigger part of the export pace,” said Caroline Bitton, Euronext’s head of commodities commercial development.

A lack of correlation between Western and Eastern European prices meant Black Sea market participants sometimes struggled to hedge prices against Euronext’s existing futures, she said.

The new contracts will be denominated in euros, based on European Union grain.

They will use the same 50-metric-ton lot sizes and the same delivery months as Euronext’s existing contracts. The wheat contract will be for 12percent protein wheat. Euronext aims to launch the contracts next June and will not initially offer options.

It is in discussions with silo operators to determine delivery points, Bitton said.

US-based CME Group launched Black Sea wheat futures last year linked to export prices in Romania and Bulgaria, but chose to use cash settlement rather than physical delivery.