Wheat futures trading: Russia builds a future for wheat
Russia completed another piece in its agricultural jigsaw in April with the long-awaited launch of wheat futures trading on the National Mercantile Exchange (Namex) in Moscow.
Although first-day trading volumes were only a modest Rb11.3 million ($480,000), the creation of the new market comes at an opportune time as traders and producers are looking to hedge their risks as wheat prices hit record highs.
It also signals Russia’s objective of building up its financial market infrastructure in general and in particular to become the international wheat trading centre for the Commonwealth of Independent States, attracting business from other major wheat producers in the region, such as Ukraine and Kazakhstan. Namex, formed in July 2002, numbers leading grain traders and food producers among its main shareholders, with Russian exchange operator Micex providing trading and settlement systems support.