(NAFB.com) – CME Group Wednesday announced the launch of Canadian Wheat futures on June 13, pending regulatory review. The contract offers market participants a new tool to directly manage exposure to the Canadian wheat market.

Tim Andriesen, Managing Director of Agricultural Products at CME Group, says, “Canada is the world’s second largest producer of spring wheat and is one of the world’s top wheat exporters, making it an increasingly important region for our global clients.”

Other officials say the contract will bring great price transparency to the market. Canadian Wheat futures will be cash-settled and will closely track the shipment of grains from Vancouver, where the bulk of Canadian western red spring wheat is exported.

The Canadian Wheat contract will be based on the Platts Canadian Western Red Spring Wheat for Number 2 CWRS 13.5 percent protein Vancouver daily price assessment. Canadian Wheat futures will be listed by and subject to the rules of the Chicago Board of Trade.