CME Plans to Start Brazilian Soybean Futures With B3 Exchange
- Contracts will be cash-settled and based on PRA assessments
- Trade war has exacerbated gap between Brazil and U.S. prices
Combines harvest soybeans at the Morro Azul farm near Tangara da Serra, Brazil.
Photographer: Paulo Fridman/BloombergThis article is for subscribers only.
CME Group Inc. plans to start Brazilian soybean futures with the country’s B3 exchange, giving traders a new hedging tool as the U.S.-China trade war disrupts the global flow of beans, people familiar with the matter said.
The contract for soybeans loaded at the port of Santos, Brazil’s biggest, would be cash-settled, according to the people, who asked not to be identified because the plan hasn’t been announced. Futures will be based on assessments by a price-reporting agency, most likely S&P Global Platts, the people said.