U.S. markets close in 1 hour 21 minutes

  • S&P 500

    4,201.04
    +78.57 (+1.91%)
     

  • Dow 30

    33,243.61
    +469.20 (+1.43%)
     

  • Nasdaq

    12,823.36
    +329.43 (+2.64%)
     

  • Russell 2000

    1,964.84
    +51.95 (+2.72%)
     

  • Crude Oil

    91.91
    +1.41 (+1.56%)
     

  • Gold

    1,805.50
    -6.80 (-0.38%)
     

  • Silver

    20.61
    +0.13 (+0.62%)
     

  • EUR/USD

    1.0314
    +0.0096 (+0.94%)
     

  • 10-Yr Bond

    2.7960
    -0.0010 (-0.04%)
     

  • GBP/USD

    1.2236
    +0.0160 (+1.32%)
     

  • USD/JPY

    132.9160
    -2.2000 (-1.63%)
     

  • BTC-USD

    23,786.39
    +742.94 (+3.22%)
     

  • CMC Crypto 200

    560.22
    +29.00 (+5.46%)
     

  • FTSE 100

    7,507.11
    +18.96 (+0.25%)
     

  • Nikkei 225

    27,819.33
    -180.63 (-0.65%)
     

Russian Invasion Prompts CME to Consider New Wheat Futures

  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
Tarso Veloso and Isis Almeida
·2 min read
In this article:
  • Oops!
    Something went wrong.
    Please try again later.
  • Oops!
    Something went wrong.
    Please try again later.
  • KW=F
  • CME

(Bloomberg) -- CME Group Inc. is considering new wheat futures as traders shy away from the existing Black Sea contract due to Russia’s invasion of Ukraine, according to people familiar with the matter.

Most Read from Bloomberg

The Chicago-based bourse, one of the world’s largest derivative exchanges, has been consulting with traders and brokers on starting a contract for Romanian wheat, said the people, who asked not to be identified because the information is private. No final decision has been made and talks may not result in a new product, they said.

The move comes after interest in the current Black Sea contract -- based on the price of Russian wheat -- tumbled following the invasion of Ukraine in February. While the existing futures are cash settled, many grain traders and agricultural processors have steered clear of any deals involving Russian products.

The new Romanian contract would be cash settled and based on price assessments by S&P Global Platts, the people said. Negotiations are at early stages, and recent news of the first grain shipment to sail from Ukrainian ports earlier this week may help provide relief to market participants who would prefer to stick to the existing contract.

A spokeswoman for CME declined to comment.

CME’s Black Sea wheat futures -- launched in 2017 -- was the benchmark to hedge grain from the region until the war broke out, but the number of outstanding contracts plunged after Russia’s invasion disrupted flows from Europe’s breadbasket. The contract is cash settled and based on Platts pricing for Russian wheat loaded at the port of Novorossiysk.

This isn’t the first time CME faces difficulties with Black Sea grain futures. The bourse introduced a physically delivered contract in 2012, only to scrap it in 2019 after it failed to gain traction. Political instability in the Black Sea region still makes it hard to launch contracts in the region. Russia invaded Crimea in 2014 and has now launched a full-fledged war against Ukraine.

Most Read from Bloomberg Businessweek

©2022 Bloomberg L.P.

Recommended Stories

  • Bumble, Let's Just Be Friends for Now

    BMBL has a date with earnings on Wednesday, and the charts say investors should refrain from flirting with the stock.

  • Boeing makes first 787 Dreamliner delivery since May 2021

    WASHINGTON (Reuters) -Boeing on Wednesday delivered its first 787 Dreamliner since May 2021, a milestone for the planemaker that has faced production problems with its widebody jet. American Airlines said it had taken delivery of its first Boeing 787 Dreamliner since April 2021, sending shares up 4.5%. American Airlines Chief Executive Robert Isom in an Instagram post reiterated the airline expects to receive nine 787s in 2022.

  • I’ve analyzed the profit margins of 30,000 gas stations. Here’s the proof fuel retailers are not to blame for high gas prices

    Rewards company Upside says its data shows fuel retailers aren't to blame for high prices at the pump.

  • Boeing Just Delivered Its First 787 to American Airlines in More Than a Year. The Stocks Are Jumping.

    The airline manufacturer had stopped delivering the planes after quality problems were found in manufacturing in 2021.

  • Inflation: Grocery prices increased 13.1% in July

    The cost of food at-home went up 13.1% in July as inflation in the U.S. cools, up 8.5%

  • Russia Resumes Oil Flow Toward Ukraine as Fee Is Paid

    (Bloomberg) -- Russia resumed oil flows through a pipeline to central Europe after Hungary’s sole refiner stepped in to resolve a tussle over the payment of a transit fee, easing fears of a supply crunch in the region.Most Read from BloombergMusk Sells Another $6.9 Billion of Tesla Ahead of Twitter TrialUS Inflation Runs Cooler Than Forecast, Easing Pressure on FedUK Plans for Blackouts in January in Emergency Energy PlanRussia Is Scouring the Globe for Weapons to Use Against UkraineDozens in Ch

  • Big Oil Sees Upside of Climate Bill As Small Drillers Brace for New Fees, Taxes

    (Bloomberg) -- Oil and gas executives from Exxon Mobil Corp. to Occidental Petroleum Corp. have been quick to applaud parts of the $437 billion climate, tax and health-care legislation that Congress is poised to pass this week. Most Read from BloombergMusk Sells Another $6.9 Billion of Tesla Ahead of Twitter TrialUS Inflation Runs Cooler Than Forecast, Easing Pressure on FedUK Plans for Blackouts in January in Emergency Energy PlanRussia Is Scouring the Globe for Weapons to Use Against UkraineDo

  • Oil bounces after drop in gasoline inventories

    Oil futures rise Wednesday, lifted after data shows a bigger-than-expected drop in gasoline inventories and a jump in refinery utilization.

  • Here's Why Enterprise (EPD) is an Attractive Investment Bet

    Enterprise Products (EPD) boasts a stable business model and is not significantly exposed to oil and gas price volatility.

  • Boeing schedules first Dreamliner delivery in 15 months

    FAA officials will continue to certify each plane individually as the manufacturing giant plans a gradual increase in production from two planes per month to five.

  • Exclusive-Indian companies swapping dollar for Asian currencies to buy Russian coal

    Indian companies are using Asian currencies more often to pay for Russian coal imports, according to customs documents and industry sources, avoiding the U.S. dollar and cutting the risk of breaching Western sanctions against Moscow. Reuters previously reported on a large Indian coal deal involving the Chinese yuan, but the customs data underline how non-dollar settlements are becoming commonplace. India has aggressively stepped up purchases of Russian oil and coal since the war in Ukraine began, helping to cushion Moscow from the effects of sanctions and allowing New Delhi to secure raw materials at discounts compared to supplies from other countries.

  • An Iran Nuclear Deal Could Send Oil Prices Tumbling Towards $80

    While the disruption of Russian crude to Europe added upward pressure to oil prices, rumors of a new Iran nuclear deal could soon send prices falling

  • Oil futures slightly trim losses after EIA shows bigger-than-expected drop in gasoline inventories

    Oil futures trimmed losses Wednesday morning after weekly data from the Energy Information Administration showed a larger-than-expected drop in gasoline inventories, while crude inventories saw another big rise. West Texas Intermediate crude for September delivery were down $2.08, or 2.3%, at $88.42 a barrel on the New York Mercantile Exchange, after trading at a session low of $87.66. September gasoline erased a loss to rise 1.1% to $2.991 a gallon. The EIA said U.S. crude inventories jumped 5

  • Denver oil company sells to Devon Energy in $1.8 billion deal

    The Denver company had only acquired the Texas assets in early 2021 and more than doubled its investment in the transaction announced Tuesday.

  • Ford Boosts Price for F-150 Lightning Electric Pickup Truck

    Ford attributes the price increase for its F-150 Lightning to higher material costs. The increase won't apply to current order holders who are awaiting delivery.

  • Oil Fluctuates as Crude Supplies Improve and US Inflation Cools

    (Bloomberg) -- Oil prices fluctuated between gains and losses in another volatile session as the market weighed growing US crude stockpiles and Russian flows against nascent signs of recovery in gasoline demand.Most Read from BloombergMusk Sells Another $6.9 Billion of Tesla Ahead of Twitter TrialUS Inflation Runs Cooler Than Forecast, Easing Pressure on FedUK Plans for Blackouts in January in Emergency Energy PlanRussia Is Scouring the Globe for Weapons to Use Against UkraineDozens in China Inf

  • Ukraine halted oil flows to Europe over payment issue, Russia's Transneft says

    MOSCOW (Reuters) -Ukraine has suspended Russian oil pipeline flows to parts of central Europe since early this month because Western sanctions prevented it from accepting transit fees from Moscow, Russian pipeline monopoly Transneft said on Tuesday. Flows along the southern route of the Druzhba pipeline have been affected while the northern route serving Poland and Germany remains uninterrupted. The suspension of pipeline flows on Tuesday will hit countries such as Slovakia, Hungary and the Czech Republic, which all rely heavily on Russian crude and have limited ability to import alternative supply by sea.

  • Oil up, rebounds on renewed gasoline demand, weak dollar

    NEW YORK (Reuters) -Oil prices rose on Wednesday, rebounding from losses early in the session on lift from encouraging figures on U.S. gasoline demand and as a lower-than-expected U.S. inflation figure drove investors into riskier assets. U.S. crude oil stocks rose by 5.5 million barrels in the most recent week, the U.S. Energy Information Administration said, more than the expected increase of 73,000 barrels. "Everyone has been very much focused on potential demand destruction, so seeing implied demand showing an outsized rebound for last week has probably given some comfort to those really concerned about that," said Matt Smith, lead oil analyst, Americas, for Kpler.

  • Apple, Amazon look to acquire Big Ten streaming rights

    Yahoo Finance's Josh Schafer breaks down reports that streaming giants are bidding over Big Ten media rights.

  • Coinbase Needs Crypto Investors to Buy, Not HODL

    The cryptocurrency exchange’s stock jumped the news of a partnership with BlackRock, but institutional volumes aren’t a cure-all for what ails the exchange right now.