Ukrainian Exchange launches tendering of futures for grain

Ukrainian Exchange plans to move to the second phase of trading futures contracts for grain, the price of which will be the price on CPT Odessa, and the delivery can be made from the pool of elevators.

This is reported by ubr.ua with reference to Interfax-Ukraine.

"We checked the model and how it works. The agreement was concluded, the calculations were made: the seller received the money, and the buyer — the grain. And we proceeded to the next step — launching a tool that will have a single price, but not on one elevator, but on CPT Odessa conditions, and the delivery can take place on one of the elevator pools, which will be admitted to trading," said the chairman of the Ukrainian Exchange board Oleg Tkachenko.

He specified that the fulfillment of the contract is not necessarily in Odessa, and the price will be calculated according to the formula with a premium or a discount depending on the elevator and logistics costs.

Oleg Tkachenko noted that the launch of the settlement futures contract is still unrealistic, since Ukraine lacks a price benchmark, so the stock exchange stopped on the futures contract with the delivery.

"Ukraine could become a regional center for pricing in the Black Sea region, we aim to create a center for pricing and liquidity in the Black Sea region," the head of the Exchange Board emphasized.

Analyzing the first results, he called for improving the norms of the law on warehouse documents, expanding the practice of the electronic contract and explanatory work with the State Fiscal Service of Ukraine, which is likely to refuse VAT refund to the non-manufacturer.

The chairman of the board also clarified that in connection with the last factor, the Exchange will allow only producers to bid.

Let us remind, that the Ukrainian Exchange and the State Reserve have launched futures contracts for grain.