On 18 September 2023, Demetra Trading will launch its own commodity auctions for the purchase of wheat on the National Mercantile Exchange (NAMEX, part of the Moscow Exchange Group).
The auctions will result in exchange sale and purchase contracts with delivery to the port of Novorossiysk by road and rail.
Auction participants get remote access to bidding, equal conditions, and competitive pricing. Demetra Trading, as part of Demetra-Holding, one of the country's largest owners of railway and port infrastructure, guarantees suppliers efficient logistics and quotas at terminals.
The entry of such large infrastructure companies as Demetra-Holding into the commodity exchange stimulates the development of the grain market, makes it possible to create the necessary liquidity on a single exchange platform and transparently determine market prices for goods. Regular trading has already enabled to determine a clear price indicator for delivery under CPT terms to the port of Novorossiysk, which became the basis for launching a cash-settled futures contract for wheat.
Roman Kron, CEO of Demetra Trading:
‘The common goal of the grain market participants is to form an organized and accessible exchange market of grain for a wide range of agricultural producers. The last-mentioned receive a reliable sales channel. We act as a guarantor of transaction fulfilment and are ready to support suppliers at every stage – from gaining access to auctions to ensuring optimal transport logistics of purchased volumes.’
Nikita Zakharov, CEO of NAMEX:
‘I’m confident that NAMEX commodity auctions are the right mechanism for creating a transparent and liquid market for Russian grain. Auctions organized by Demetra Trading will create additional attractiveness for such exchange trading, give the market new participants and new volumes.’
The first grain auctions were launched on NAMEX two years ago. During this time, the trading volume exceeded 2.5 million tons, with more than 1.5 million tons of wheat sold through the auctions during the 2022/2023 season. The trading volume amounted to 42 billion rubles in monetary terms. At the moment, 460 companies are participating in the auctions, of which 46 companies are auction customers.