Wheat spreads likely

Paris
Euronext has said it would launch on May 6 Inter-Commodity Spread (ICS) trading between its standard milling wheat futures contract and its new premium one.
The exchange’s head of commodities had told Reuters earlier this month it would launch the facility in an effort to boost liquidity in its new premium wheat contract, without giving a launch date.
Euronext’s No. 3 premium wheat contract, touted as a response to problems caused by a rain-hit harvest last year, started trading last month and has so far attracted little activity compared with older No. 2 contract that is a price benchmark in Europe. The ICSs will be available on Euronext’s test platform from April 23, it said in a statement. Buying an ICS will mean buying one No. 3 contract maturity and selling one No. 2 contract maturity, or the converse. Members will be able to trade an ICS on all existing maturities, which should give members flexibility, it said.