First physical delivery under wheat futures completed on MOEX

On 11 March 2021, Moscow Exchange completed the first physical delivery under the 4 Class Wheat futures contract. The contract ticker is WH4.

Clients of VTB Capital Broker and Univer Capital participated in the delivery of wheat. The sale contract to take the delivery was signed by the parties on the spot market of National Mercantile Exchange (part of Moscow Exchange Group). The contract was settled at the spot price set at elevators in the Voronezh Region, which was RUB 14,100 per ton, exclusive of VAT.

The Moscow Exchange Derivatives Market introduced a deliverable futures contract on wheat on 21 December 2020. Since the launch, the trading volume in the contract has been 3,975 tons or RUB 52.1 mln. Clients of eight trading and clearing members traded the contract. VTB Capital acts as the market maker for the contract, providing two-sided quotes for more than 95% of the main trading session time on a daily basis.

The launch of deliverable wheat futures is another step forward in the development of Russia’s derivatives markets, as well as new potential for the Russian grain market.

The contract is quoted in RUB per ton of class 4 wheat. The contract size is 25 tons. Wheat will be delivered to elevators in the Voronezh region in March, September and December. The authorized elevators for delivery are Rossosh Elevator and Grain Base of Povorino. The list of elevators will be expanded in future.