Euronext touts growth in core agricultural contracts, cautious on new ones

Euronext, the operator of the European commodities market, is strategically expanding its main crop futures business to attract more non-European participants, particularly wheat importers from the Middle East, aiming to build on last year's record volumes. The company's focus is on expanding its existing wheat, rapeseed, and maize markets, rather than introducing new products in the Black Sea grain export zone. The success of Euronext's wheat futures, which are used as a price benchmark for the European market, has led to increased participation, especially since lower fees were introduced last year. The exchange is cautiously considering its expansion in the Black Sea region to avoid diluting its existing contracts and is confident in the potential of its salmon futures, launched last year.

Euronext ENX aims to build on last year’s record volumes for its main crop futures by attracting more non-European players like wheat importers in the Middle East, the exchange’s head of commodities told Reuters. With the group prioritising its established wheat, rapeseed and maize (corn) markets for expansion, it is in no rush to launch new products, including in the Black Sea grain export zone, Euronext’s head of diversified services Camille Beudin, who is in charge of commodities products, said in an interview. Euronext’s commodities business is dominated by its wheat futures (BL2c1), a price benchmark for the European market that represents nearly 80% of the total volume of agricultural trades on the exchange. As with its rapeseed and maize markets, which are smaller but also expanding, the market operator sees its wheat futures connecting a large physical market with financial investors. “Today, the milling wheat contract is not a purely French contract, it is a contract ...