Euronext to Add More Wheat Silos at Ports
Euronext is to expand the number of port delivery points for wheat traded on its Paris-based futures market <0#BL2:> and is considering a system of storage certificates to cater for inland grain operators, the European exchange said on Tuesday.
Its steps to reinforce its wheat futures, a price benchmark for the European market, come after it scrapped a short-lived premium wheat product, and as CME Group is moving closer to launching a rival European wheat contract.
Euronext will launch an additional delivery point at the northern French port of Rouen from September 2017 after reaching an agreement with trading firm Lecureur to use its silo there, Olivier Raevel, head of commodities at Euronext, told Reuters.
It is also in talks with cooperative group InVivo to create a delivery point on the French Atlantic coast, probably at the port of Montoir, he said.
The exchange is studying a system of storage warrants covering inland grain silos that could be exchanged against delivery certificates at silos used by Euronext and also help grain companies get financing from banks, Raevel said.
(Reporting by Valerie Parent and Gus Trompiz)
