CME to launch new Black Sea wheat contract in June

PARIS, April 29 (Reuters) - CME Group CME.O will launch a new Black Sea wheat futures contract in June that will track export prices in Romania and Bulgaria, the financial markets operator said on Tuesday.

The announcement, which confirms the contract plans reported by Reuters in March , marks the latest attempt by CME to develop grain derivatives in the crucial Black Sea export zone.

The new product, subject to regulatory approval, will be linked to Argus Media's index of export prices for 12.5% protein wheat in the "CVB" zone comprising the Romanian port of Constanta and the Bulgarian ports of Varna and Burgas, CME said in a market notice.
Trading will start on June 2, it said.

The group had suspended its previous Black Sea wheat futures based on a Russian price index after Moscow's full-scale invasion of Ukraine stalled trading interest.

The new contract will be cash-settled, priced in U.S. dollars and traded in 50-metric-ton lots, it said, in line with details reported previously by Reuters.

The contract will offer both futures and options, it said.

While Russia and Ukraine are much larger Black Sea wheat suppliers, the export role of European Union members Romania and Bulgaria has expanded in recent years.

CME, whose U.S. corn, wheat and soybean futures are global price benchmarks, has kicked off several new grain and oilseed products in recent months. Its latest launch was on April 28 when it inaugurated a European rapeseed oil futures contract, also tied to an Argus price index.