June 2009 had the highest monthly turnover in 2009 in the market of delivery futures for wheat at the National Commodities Exchange, a member of the MICEX Group, – RUB 4.1 billion (12 430 contracts or 787 480 tons), which is almost 9% higher than the showings in May. The first half of 2009 was marked by an over 8 percent growth in turnover (in comparison with the second half of 2008), totalling RUB 24.2 billion (72 000 contracts or 4.6 mln tons).

The total turnover in the market from the start of trading on April 9, 2008 to June 30, 2009 was 9.7 million tons for a total amount of RUR 50.6 billion.

The market of delivery futures for wheat at NCEX allows trading participants, including agricultural commodity producers, to raise the profitability of their enterprises by insuring the risk of unfavorable price changes (especially in periods of high market volatility), form a benchmark for economic planning and settlement reliability, have a better opportunity to borrow from banks, and expand the possibilities to buy and sell crops.

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NCEX circulates 2 types of delivery futures contracts: futures contract for wheat of class 3,4, and 5 (contract amount is 65 tons) on EXW (ex works) delivery terms – grain elevators of the Southern Federal District and futures contracts for export wheat (contract amount is 60 tons) on FOB (free-on-board) delivery terms – port of Novorossiysk. To make deliveries on EXW (ex works) terms of the SFD, 42 grain elevators are accredited by NCEX.

Since 2002, NCEX has participated in the state commodity and purchase interventions in the grain market and is an authorized exchange of the Russian Ministry of Agriculture. By the resolution of the tender commission of the Russian Ministry of Agriculture, NCEX was chosen to perform state commodity and purchase interventions in order to regulate the market of agricultural products and raw and food products.

The National Commodities Exchange CJSC was founded in July 2002 with the purpose to organize the exchange commodities market. Its shareholders are: the Russian Grain Union, Union of Russian Sugar Producers, APC OGO OJSC, Razgulay Grain Company CJSC, MICEX CJSC, and others. NCEX has a license from the Commission on Commodity exchanges under the MA of Russia entitling it to organize exchange trading in various commodity sections, as well as the standard contracts section.

The MICEX Group is an integrated exchange structure, rendering electronic trading, clearing, settlements on trades, and depositary and informational services. The Group includes MICEX CJSC, the MICEX Stock Exchange CJSC, the National Commodities Exchange CJSC, the MICEX Settlement House CJSC, the National Depositary Center NCP, the National Clearing Center JSCB CJSC, regional exchange and settlement centers, and other organizations. They serve more than 1,700 participants in the exchange market – leading Russian banks and brokers in Moscow and other large financial-industrial centers of Russia. The MICEX Group is currently the leading exchange structure in Russia, the CIS countries, and Central and Eastern Europe.

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Results of Wheat Futures Trading at NCEX for the First Half of 2009: June had the Highest Amount of Trading in 2009, Semester Turnover Grew by 8 Percent