PARISBOURSE SBF SA Launches Europe's First Corn Futures

On Friday, October 1, ParisBourse SBF SA launched Europe's first corn future, rounding out the range of commodities already traded on markets operated by ParisBourseSBFSA. The new contract was created in response to demand from industry professionals and has received the support of AGPM, the French corn producers' trade body. Contract features were developed in close collaboration with market professionals. Lots are 50 metric tons and the underlying asset is standard-quality French corn. Delivery is FOB at three ports on France's Atlantic coast - Bordeaux - Blaye, Bayonne, La Pallice - the main physical reference market in Europe. "This new contract is specially designed to meet needs of traders who want to hedge against price fluctuations, with markets set for greater volatility as a result of changes to the Common Agricultural Policy under the Agenda 2000 program," said Christophe Terrain, president of the AGPM. "The launch of a corn future is yet another example of cooperation between key players in agro-industry and ParisBourse SBF SA. This new contract expands the fast-growing range of products available, and illustrates once again ParisBourseSBFSA's commitment to working closely with industry professionals to adapt products to meet the changing European farming scene," said Pascal Samaran," Deputy Chief Executive Officer, , at ParisBourse SBF SA. A large number of companies have supported the initiative and will be using the contract immediately. They include Agralys, Agroceres France, Amylum, Armbruster Frères SA, Cargill France, Cerestar, Champagne Céréales, Compagnie Continentale, Epis-Centre, Eurasud, Glon SA, Granaco, Guyomarc'h, Le Gouessant, Letico, Louis Dreyfus Négoce, Sigma, So.B. Tran, Soufflet Négoce, Tradigrain, among others. Commodity derivatives traded on ParisBourse SBF SA currently include two contracts on oilseeds - a rapeseed future and option - and a milling wheat future. In 1999, trade volumes in these contracts were up 51.4% on the previous year. A rapeseed meal future will also be launched by the end of the year, and several other products - notably sunflower seeds and rapeseed oil -are currently being examined. Interest in the sector is also on the rise among Bourse members. There are now 14 commodity contract trading members, six of whom joined in 1999. Based in France and abroad, they enjoy direct access to the new contracts through NSC, the electronic trading system used by the Paris Bourse. NSC is a common platform handling all products listed by ParisBourse SBF SA, including equities, interest-rate derivatives, and equity and index options. Thirteen market members (including 4 new arrivals in 1999) offer clearing services.