CME Group, a leading financial markets operator, has announced its plans to launch cash-settled futures for European rapeseed oil next month. The new product, which will use an Argus Media index for Dutch prices, is set to begin trading on April 28, 2025, pending regulatory approval. These futures contracts will be available through CME’s Chicago Board of Trade exchange.
Contract Details
The futures will consist of consecutive monthly contracts, starting with May 2025. Each contract will trade in lots of 20 metric tons, providing a new trading option for market participants in the rapeseed oil sector.
Rapeseed oil, derived from rapeseed, is the most widely produced oilseed crop in Europe. The launch of these futures comes as CME Group seeks to expand its presence in the European grain market, having already established global price benchmarks in U.S. corn, wheat, and soybean futures.
CME Group’s Push in the European Grain Market
This move represents CME Group’s renewed efforts to tap into the European grain market, despite previous challenges. The company had previously scrapped its European Union wheat futures contract after failing to attract significant volumes, especially against Euronext’s wheat market. CME also suspended trading in its Black Sea grain futures following the onset of the Russia-Ukraine conflict.
Euronext currently holds a strong position in European rapeseed futures, which serve as a key price benchmark. However, Euronext discontinued related futures contracts for rapeseed oil and meal due to lack of trading activity.
Collaborations with Euronext
Last year, CME Group and Euronext launched joint contracts that allow for trading of price spreads between their respective wheat futures, marking a collaborative effort between the two exchanges. This new initiative for rapeseed oil futures underscores CME’s continued interest in diversifying and strengthening its product offerings in the European market.
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