Glacier Farm Media | MarketsFarm – The CME Group has plans to launch a new Hard Red Spring Wheat futures and options market in the second quarter of 2025, rivaling the Minneapolis hard red spring wheat contracts now traded through the MIAX platform.
“By adding Hard Red Spring Wheat futures and options, market participants will now be able to manage price risk across every major type of wheat on one exchange and all cleared in a single clearing house,” said John Ricci, managing director and global head of agricultural products at the CME Group in a Jan. 8 press statement.
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The move still requires regulatory approval.
“In addition to providing important capital efficiencies and increased spread capabilities, our new physically delivered (HRSW) futures contract will also have enhanced specifications and be delivered through shipping certificates, maximizing flexibility for commercial participants. We will also be launching options at the same time – offering clients another important tool to manage risk in the wheat market,” added Ricci.
Currently, there are three wheat contracts traded in the U.S. In addition to the separate Minneapolis spring wheat market, soft red and hard red winter wheat contracts are already traded on the CME platform.
Minneapolis wheat is the least traded of the three, with its volumes often significantly lower than the winter wheats. Media reports suggested the new wheat futures could take away part of the volume of activity at Minneapolis.
“It’s making the smallest contract even smaller,” commented Bruce Burnett, director of markets and weather for MarketsFarm.
As well, MarketsFarm senior analyst Mike Jubinville suggested that only one of the spring wheat contracts is likely to survive.
