The Chicago Board of Trade (CBOT) will launch on May 20 CBOT South American Soybean futures, a new contract created to meet the growing risk management needs of producers and global consumers of soybeans grown in Brazil and Argentina. This is the CBOT’s first agricultural contract with international physical delivery points.
CBOT Chairman Charles Carey says: “Working closely with South American soybean market participants, the exchange developed the contract to provide a reliable, transparent and efficient price risk management tool. The CBOT has traded soybean futures for nearly 70 years, and we are proud to continue serving the domestic and international agricultural community by providing even greater trading opportunities for market participants.”
CBOT president and CEO Bernard Dan adds: “The CBOT is dedicated to driving product innovation within the global derivatives markets. Launching South American soybean futures is one of many efforts designed to address the changing trends within worldwide consumption and production of agricultural products. Further, the new contract will join the exchange’s highly liquid soybean complex, the global benchmark for pricing and price risk management.”
The CBOT’s new contract was created to attract the interest of South American soybean producers and consumers worldwide. Brazil and Argentina supply more than 50% of the world’s soybeans, and the product is imported by European and Asian countries, as well as other countries around the world.
Regular trading hours for CBOT South American soybean futures in the open auction market are from 9:30 am to 1:15 pm Central Time, Monday through Friday. On the CBOT’s premier electronic platform, trading hours are from 7:31 pm to 6:00 am Central Time, Sunday through Thursday. The CBOT South American Soybean futures contract will be physically settled, with delivery points located in the ports of Paranagua and Santos, Brazil.