The FINANCIAL -- Euronext on July 16 announced that the Euronext Milling Wheat futures contract listed on the Johannesburg Stock Exchange (JSE) is showing encouraging levels of market interest, following its official start of trade on 8 July.
To date, the JSE has traded just over 10 000 tons of wheat. Trading value recorded is close to SA Rand 24 million. Open interest is at 204 contracts, indicating a healthy start for the contract. Open interest records the number of contracts for particular futures that are outstanding.
As part of a mutual license agreement finalised in February 2015, the JSE indicated it would offer market participants a cash-settled and rand-denominated version of Euronext’s Wheat Milling Contract. The contract size is 50 metric tons and contract months are March, May, September and December, according to Euronext.
JSE Commodities Director, Chris Sturgess said, “Trade in the contract is off to a favourable start. Listing the Euronext flagship Milling Wheat futures contract reinforces our strategic intention to provide market participants in South Africa, and key markets on the continent, with access to global commodity products.”
Nicholas Kennedy, Head of Commodities Business Development at Euronext, said, “Euronext launched this initiative with the JSE as part of our larger strategy of broadening our reach in a selective manner with targeted partners. We are delighted to see such rapid uptake in our global benchmark Milling Wheat contract, giving it greater visibility in a growing market.”