In August 2009, the maximum figure of trading volume in contracts was reached in the NAMEX’s market for delivery futures on wheat
September 01, 2009
In August 2009, on the National Mercantile Exchange, a member of the MICEX Group, the volume of trading in the market for delivery futures on wheat reached 13 058 contracts (824 thousand tons of grain) worth of 4.05 billion rubles. This figure is 1.3% more than in July 2009. This is the maximum value of trading volume in contracts and in tons of the underlying asset for 2009. It exceeds the monthly average figure for 2009 by 7.7%.
Besides, this year’s average monthly volume of trading in contracts in the NAMEX’s market for wheat futures exceeds by 29.7% the same indicator on the London International Financial Futures Exchange (LIFFE).
From the launch of trading on April 9, 2008 to August 31, 2009 the total volume of trading in the market amounted to more than 11.3 million tons of grain worth of 58.5 billion rubles (178 354 contracts).
The market for delivery wheat futures on the NAMEX enables participants in trading, including agricultural producers, to increase the profitability of their businesses by insuring the risks of adverse changes in prices (especially during the periods of high volatility in the market), forming a benchmark for business planning, obtaining better access to bank credits, expanding their possibilities of buying and selling grain, as well as thanks to the reliability of settlements.
Brief information:
Two types of delivery futures are traded on the NAMEX: futures on 3rd, 4th and 5th class wheat (volume of contract: 65 tons) with delivery on EXW terms to grain elevators of the Southern Federal District of Russia and futures on export wheat (volume of contract: 60 tons) with delivery on FOB terms to Novorossiysk port. 43 grain elevators are accredited on the NAMEX for the purpose of delivery of grain on EXW terms to grain elevators of the Southern Federal District.
Since 2002, the NAMEX has taken part in state commodity and procurement interventions in the grain market and is the authorized exchange of the RF Ministry of Agriculture. The Contest Commission of the RF Ministry of Agriculture has selected the NAMEX to conduct state procurement and commodity interventions to regulate the market for agricultural products, raw materials and food in 2009–2012.
The National Mercantile Exchange was established in July 2002 with the aim of organizing an on-exchange commodity market. Shareholders in the NAMEX are: the Russian Grain Association, the Association of Sugar Producers of Russia, APK OGO, Razguliay Grain Company, the MICEX and some other organizations. The NAMEX holds the License to organize on-exchange trading in different commodity sections and in the standard contracts section, issued by the Federal Service for Financial Markets.
The MICEX Group is an integrated exchange which provides services related to electronic trading, clearing, settlements as well as depository and information services. The Group is comprised of the MICEX, the MICEX Stock Exchange, the National Mercantile Exchange, the MICEX Settlement House, not-for-profit partnership The National Depository Center, commercial bank National Clearing Centre (closed joint-stock company), regional exchanges and regional settlement centers and some other organizations. The Group serves over 1700 participants in the on-exchange market – leading Russian banks and broker companies from Moscow and other large financial and industrial centers of Russia. At present the MICEX Group is the largest exchange in Russia, the CIS, Central and Eastern Europe.