A new price index for wheat will appear on the Moscow Exchange

The indicator will be calculated and published on its website by the National Commodity Exchange.

The index will be set in rubles without VAT and will be based on the daily calculation of the weighted average ton of wheat of the fourth grade with the condition of paid delivery to Novorossiysk.

Russia is the largest exporter of wheat in the world, but so far there has been no such indicator on the Russian market, and Western analogues do not reflect the specifics of Russian pricing.

The value index indicator was created at the request of market participants, and its launch became possible thanks to commodity auctions for the purchase of wheat in August 2021.

During this time, about 400 auctions were held at the National Commodity Exchange, and the total trading volume amounted to more than 800 thousand tons. Almost 200 companies took part in the auction.

The introduction of a price index for wheat is not the only innovation.

In July-August 2022, Moscow Exchange plans to launch a settlement futures for wheat on the derivatives market.

At the moment, there is a so-called staged futures for wheat, which involves material delivery.

Unlike staged futures, settlement futures are purely financial instruments.

The emergence of settled futures will allow investors, on the one hand, to use price fluctuations to make a profit without the risk of delivery, and on the other hand, to hedge the change in wheat prices.

Also, the launch of the settlement futures and the cost index will increase the number of bidders and increase the money turnover, which, as a result, will bring benefits to producers.

Meanwhile, the situation on the world wheat market is escalating.

A quarter of the world’s wheat supplies came from Ukraine and Russia. The geopolitical situation around the conflict in Ukraine and the sanctions imposed against Russia have led to unprecedented demand for grain and higher prices.

May 11 food wheat prices on the Chicago Commodity Exchange reached almost $400 per ton.

May 13 The head of the Association of Grain and Flour Producers of Georgia said that the wheat stocks in the country remained for 10 days. At the same time, Georgia does not provide itself with culture, 90% of imports come from Russia.

In addition, the Government of India on May 14 2022 announced a ban on grain exports amid heat waves.

On May 17, 2022, the price of wheat in European markets broke a record, reaching €435.