Euronext wants to continue building on the record-breaking volumes of its main crop futures last year by attracting non-European participants like wheat importers from the Middle East.

In an interview, Camille Beudin of Euronext, the head of diversified service and in charge of commodities, stated that the group is not in a hurry to launch any new products. This includes the Black Sea grain-export zone.

Euronext’s commodities business, which is dominated mostly by wheat futures - a benchmark price for the European market - represents almost 80% of all agricultural trades at the exchange.

The market operator believes that its wheat futures will connect a large physical market to financial investors, similar to its maize and rapeseed markets which are also growing.

Beudin stated that "Today the milling wheat contracts are not just French, they have a global scope, ambition, and are becoming a real price reference on a global scale."

He said that the exchange was looking at regions such as the Middle East and North America. It is also interested in a major wheat-importing zone.

Euronext reported record volumes in its maize, rapeseed, and wheat contracts for the past year. Following 2024's growth of 30%, wheat volumes increased 15% on an annual basis in the first three months to set another record.

Beudin says that the lower fees Euronext charges for clearing its own commodity contracts since last year has increased participation.

Euronext has been more cautious in recent years about adding agricultural products to its product range.

Beudin stated that the Black Sea Exchange has not yet decided on potential services for the region and is cautious about diluting its current contracts.

He said that physical delivery of maize to Romania could cause confusion, given that the contract for the exchange is based on French standards. Many grain operators from the Black Sea area already use Euronext contracts through physical premiums.

CME Group, a rival U.S. company, has developed derivatives for Black Sea grains and will launch a contract on EU rapeseed oils later in April.

Beudin stated that Euronext did not see the need to resurrect its scrapped rapeseed meal and oil contracts which had failed to generate any liquidity. There was also no room for a sugar future product, given existing futures products on other exchanges.

Beudin notes that the exchange's salmon futures are showing a lot of open interest and have been launched in 2011. The market is established in Norway. (Reporting and editing by Jan Harvey; Sybille De La Hamaide, Gus Trompiz)

(source: Reuters)