Russian Agriculture Ministry plans to develop exchange trade in food
MOSCOW. Jan 16 (Interfax) - Russia's Agriculture Ministry plans to develop exchange trade in food, the ministry said.
At a Monday meeting led by Agriculture Minister Elena Skrynnik and with the participation of OJSC MICEX-RTS executives, issues related to developing exchange trade in the market for deliverable grain futures were discussed.
The meeting's participants noted that developing a system for deliverable futures contracts will allow agricultural producers to insure the risks of unfavorable changes in crop prices, to expand opportunities for purchasing and selling grain, and to receive a benchmark for planning agricultural activities.
Skrynnik proposed creating an Agriculture Ministry inter-authorities working group with the participation of MICEX-RTS, the public council attached to the ministry, and business representatives. She said that besides grain, it would also be necessary to actively develop exchange trade in other types of agricultural products - for example, dehydrated milk.
Trade in deliverable grain futures in Russia began on April 9, 2008. Originally, two futures contracts were circulated on the exchange - 3, 4 and 5 class wheat contracts (with contract volume of 65 tonnes) with EXW (ex warehouse) delivery terms (elevators in the Southern Federal District); and wheat export contracts (60 tonnes) with FOB (free on board) delivery terms at the Port of Novorossiysk. Later, rice and rice cereal contracts were circulated on the exchange.
