CHICAGO, July 29 CME Group Inc said it
plans to launch two centrally cleared over-the-counter wheat
swaps tied to the Australian dollar next month.
CME, owner of the Chicago Board of Trade, already offers
cleared over-the-counter U.S.-dollar denominated swaps for corn,
wheat, soybeans and Malaysian crude palm oil.
The Australian dollar wheat swaps will be for hard red
winter wheat and soft red winter wheat and debut Aug. 12,
pending regulatory approval. They will be approximately
one-fifth the contract size of existing wheat swaps at 27 metric
tons, according to CME.
Over-the-counter agricultural markets allow traders to
privately negotiate their own prices, trade off exchange and
then clear the transactions through CME.
Australia, traditionally one of the world's top wheat
exporters, has been a focus of the global grain industry
recently. Agribusiness company Archer Daniels Midland Co
earlier this year struck a deal to buy Australian grain handler
GrainCorp Ltd for $2.8 billion.