BM&FBOVESPA Starts Trading In New Soybean Derivative

11/06/2012

BM&FBOVESPA begins trading today a new soybean future contract. The underlying of this contract is the settlement price of the Mini-Sized Soybean Futures Contract traded on the Chicago Board of Trade (CBOT), which is owned by CME Group. The contract is authorized for trading as of the August 2012 contract month, under the SJC ticker, from 9:00 a.m. to 3:15 p.m. The price quotations for the future contract are in US Dollar per 60-net kilogram bag, at the equivalent of 450 bags or 27 metric tons. The maximum daily price fluctuation will be +/- USD 1.543 per 60-kilogram bag, from the previous day’s settlement price. The settlement prices of the Mini-Sized Soybean Futures Contract will be calculated from the prices available on the CME Group website.

The launch of the new soybean contract is part of an agreement to promote the cross-listing of commodity futures with CME Group, seeking to meet demand from soybean market participants that face difficulty in trading on foreign exchanges. The new contract will also facilitate hedging strategies through arbitrage between local and international prices.

Commodities portfolio

The soybean futures contract cash settled at the price of the product with the “transferred’ status traded at the Paranaguá (Paraná) port, and settled in accordance with the ESALQ/BM&FBOVESPA Soybean Price Index, shall remain authorized for trading. The BM&FBOVESPA commodity derivatives portfolio includes ethanol, corn, live cattle and Arabica coffee futures and options on futures.