CME Group announced plans on Tuesday to introduce cash-settled futures for European rapeseed oil next month, using an Argus Media index for Dutch prices. The new contracts will begin trading on April 28, pending regulatory approval, through the Chicago Board of Trade (CBOT), according to a company notice.
Expanding Into the European Grain Market
The futures contracts will feature consecutive monthly expirations, starting with May 2025, and will be traded in lots of 20 metric tons. Rapeseed oil, a byproduct of rapeseed—the most cultivated oilseed crop in Europe—is a key ingredient in food production and biofuels.
This launch represents a renewed push by CME Group to strengthen its presence in the European grain market. While the exchange’s U.S. corn, wheat, and soybean futures serve as global price benchmarks, previous European expansion efforts have faced challenges.
CME previously discontinued its European Union wheat futures contract due to low trading volumes compared to Euronext’s wheat market. Additionally, it suspended Black Sea grain futures following Russia’s invasion of Ukraine.
Euronext’s rapeseed futures serve as a key price benchmark in Europe, but its attempts to introduce rapeseed oil and meal futures were abandoned due to limited trading activity.
Collaboration and Market Growth
Despite past setbacks, CME and Euronext have been working together to expand trading opportunities. Last year, they introduced contracts allowing market participants to trade price spreads between their respective wheat futures.
With the launch of European rapeseed oil futures, CME aims to capture growing demand for price risk management tools in the agricultural commodities sector while challenging existing benchmarks in the European market.
