Chicago Spring Wheat Contract Includes RRV Delivery Points

The CME Group launched a spring wheat contract in mid-April. Since that time, more than 460,000 contracts have traded. CME Group Managing Director and Global Head of Agricultural Products John Ricci said this effort provides an effective way to hedge the three major North American wheat markets through one exchange and one clearinghouse. “We also added the Red River Valley as a delivery location, given the amount of production in that area and the demand from that region,” said Ricci. “This was an opportunity to bring in a lot of different producers, commercials, and there are a lot of different millers in the area, too.” Ricci is seeing a growing demand for inter-commodity spreads. The CME Group has also listed a new ten-ton fertilizer contract. Listen to the full interview.