June 14 (Bloomberg) -- CME Group Inc.’s Black Sea wheat contract is “more of a long-term bet” and will take time to build liquidity, said Tim Andriesen, the managing director of agricultural commodities and alternative investments.
“Black Sea wheat is going to be a long-term investment from our standpoint in terms of getting a product that’s going to ultimately be very valuable to market participants,” Andriesen said today during a media roundtable with reporters in Chicago. CME is the owner of the world’s largest futures exchange and grain markets.
The Black Sea contract, which started trading on June 6, reflects the price of grain from a part of the world where production and exports are rising, he said. It will “take time to get traction,” he said.
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