- As of 24 July 2020, Polish Power Exchange (TGE), GPW Group subsidiary, offers trade in standardised class B and C rye grains on the Agricultural and Food Commodity Market (RTRS)
- Like trade in wheat, trade in rye on RTRS will be offered on the spot market in the single-price system and the auction system
- Since the launch, RTRS has 32 authorised warehouses and 3 authorised brokers
Rye is a new product traded on the Agricultural and Food Commodity Market (RTRS). Class B and C rye grains are traded on RTRS as of 24 July 2020. After wheat, the second commodity is traded on the agricultural market on the cash (spot) market where transactions are settled outright.
“I am glad that the exchange agricultural market is growing. Its launch was a historic moment for our agriculture and the fulfilment of my long-time aspirations. Many former Ministers talked about it but somehow never made it happen. We have been testing new tools and methods of the operation for months. A forward-looking analysis of the market is key. The introduction of rye as a new product traded on RTRS follows an analysis of the needs of market participants and takes the agricultural exchange to the next level. It is my objective to help farmers make bigger gains under safe and transparent conditions offered by the exchange. Prices formed on the exchange are most objective. Those are market prices driven by supply and demand. It is good to note that the exchange has become a point of reference for product prices,” said Minister of Agriculture and Rural Development Jan Krzysztof Ardanowski.
Trade in rye, like trade in wheat, will take place in parallel in two systems: the single-price system and the auction system. In the single-price system, the Exchange supports regular weekly price quotes of standardised contracts in commodities stored by market participants in TGE-authorised warehouses. All transactions at a session for a single warehouse are made at a single price. In the auction system, TGE opens and holds ad-hoc auctions where the owner of commodities who operates an authorised warehouse directly sells the commodity. To be authorised, each warehouse selects the type of commodity to store: wheat and/or rye.
“The exchange agricultural market is a model of best practice of intersectoral co-operation between research, business, and the administrative environment in support of the development of the Polish economy. In this case: its food and agricultural sector. I am certain that our initiative will significantly strengthen the position of Polish farmers as a key pillar of the Polish economy,” said Secretary of State at the Ministry of State Assets Artur SoboĊ.
The operation of the Food Platform relies on TGE, Commodity Clearing House (IRGiT), and Authorised Warehouses. TGE operates transparent trade in agricultural commodities; IRGiT provides safe clearing; and Authorised Warehouses ensure high quality of stored commodities. The Food Platform pilot continues until the end of August 2020. TGE and IRGiT charge no fees from market participants during the pilot.
“The exchange agricultural market is one of our key strategic initiatives which we have launched and continue to implement despite the current coronavirus pandemic. Less than six month after the launch, we are introducing a second product to trading and preparing to introduce the third product, maize, already this autumn. We are planning to add more products at a later time, including sugar, skimmed milk powder, and apple juice concentrate. We are also planning to open a forward market in food and agricultural commodities,” said GPW CEO Marek Dietl.
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The Warsaw Stock Exchange Group (GPW Group) operates trading platforms for shares, Treasury and corporate bonds, derivatives, electricity and gas, and provides indices and benchmarks including WIBOR and WIBID. The index agent FTSE Russell classifies the Polish capital market as a Developed Market since 2018. The markets operated by the GPW Group are the biggest in Central and Eastern Europe. For more information, visit www.gpw.pl
