On December 23, 2015, National Mercantile Exchange, part of Moscow Exchange Group, launched on-exchange trading in grain. NCC Clearing Bank acts as the central counterparty. National Logistic Company will act as logistics provider, alongside surveyor companies. Accredited elevators will provide grain storage solutions.
The Exchange currently offers deliverable wheat forwards with minimum lot size of one ton and delivery lot of 68 tons. Wheat from classes 3 to 5 is used as an underlying asset. Contract settlement periods range from three days to six months.
“Russia has ramped up grain production over the past few decades and become one of the world’s largest exporters of this key commodity. Creating a grain marketplace marks a milestone in the modern history of the Russia’s grain market, and will provide transparent and fair pricing, mitigate the risks involved in lending to grain producers and improve the efficiency of grain business. On-exchange trading will also allow small players that often have advanced grain processing technologies to be involved in the national grain market. Other agricultural commodities typically traded on exchanges are planned to be offered in 2016 and following years”, said Deputy Agriculture Minister Sergey Levin.
ZEMA collects over 100 reports from the agricultural market. To learn more about ZEMA’s extensive data coverage, visit http://www.ze.com/the-zema-solutions/data-coverage/.
Effective Date: December 23, 2015