Wheat 12.5pc Romania-Bulgaria fob CVB
Overview
The Romanian-Bulgarian Constanta Varna Burgas (CVB) ports are key wheat-exporting locations in the Black Sea market. They have risen in prominence in recent years as a result of both a growing wheat crop and the ongoing conflict in the Black Sea.
The EU’s CVB ports represent a point of geopolitical stability in a highly volatile region that plays a critical role in the world’s food security.
Price assessment details
What is the wheat Romania-Bulgaria CVB price assessment?
The Black Sea CVB 12.5pc protein wheat fob price has been assessed by Argus since May 2022. It is a trusted, independent price benchmark for the physical fob cash market. The assessment is based on daily discussions with a wide range of buyers, sellers and trading intermediaries.
Market participants have lacked the tools to hedge or gain exposure to the world’s largest wheat export market since the previous Black Sea Wheat Futures and Options were suspended because of the conflict. Russian wheat represents the largest trade flow in the region, with the CVB 12.5pc protein specification considered a strong proxy for this major flow.
How is this price used?
US-based exchange CME Group has launched cleared, cash-settled futures and options for Black Sea Wheat CVB to offer market participants a way of hedging their exposure, enabling them to manage counterparty credit risk.
The contracts are financially settled against Argus, enabling market participants to trade agricultural markets without having to manage the physical product.
These contracts can be traded alongside Chicago SRW Wheat and KC HRW Wheat contracts, and are cleared through CME Clearing, enhancing capital and clearing efficiencies. In line with Chicago Wheat and KC Wheat contracts, the market can trade Black Sea CVB wheat for July, September, December, March and May, with contracts listed seven months forward.
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Key price assessments
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