Euronext is planning to launch a full rapeseed derivatives solution on 14 November 2014, which will allow the industry to trade individual futures and options contracts for rapeseed grain, meal and oil.
Euronext is the first exchange in the world to offer this combination of hedging instrument for rapeseed.
The new rapeseed derivatives complex will cover:
• Futures and options contracts for rapeseed grain
• Futures and options for rapeseed meal
• Futures and options for rapeseed oil
The three contract combination covers the entire supply chain, offering a solution to the increased volatility of rapeseed oil and meal pricing. It will allow users to manage their entire crushing margin from grain to oil to meal. Rapeseed oil and meal contracts are based on non-GMO references, and thus comply with specifications requested by industry participants. This new rapeseed combination will also service the biodiesel participants in the energy sector since it allows oil blenders to hedge their exposure to this component of biofuels.
Delivery points for the oil contract are the ports of Antwerp, Amsterdam, Ghent and Rotterdam. Delivery points for rapeseed meal are in Antwerp and Ghent for Belgium; in the lower Rhine valley for Germany; and in Rotterdam for the Netherlands.
Anthony Attia, chairman and CEO of Euronext Paris, says: “It is clear that our members find our commodities operations very attractive. Euronext tracks stakeholders’ needs to offer innovative, comprehensive products meeting the very highest standards – a client-oriented approach that is key to positioning ourselves as the market benchmark for milling wheat, rapeseed and corn contracts.”
Lionel Porte, head of product development, commodities at Euronext, says: “For many years, our rapeseed futures contract has become a European benchmark for rapeseed and oilseed prices on the physical market, with contracts representing 76 million tons of grains, tonnage equivalent, traded since the beginning of this year alone. Our new rapeseed derivatives complex, which enjoys the full support of the industry in Europe, expands our offering in rapeseed oil and meal. It is designed to meet the needs of our European and international users, enabling them to take part in the growth of biofuels and edible oils for food, and increased use of rapeseed meal in animal feed.”
