Volatility in commodities markets
Volatility in the commodities markets surged significantly in 2022. This was mainly due to the invasion of Ukraine by Russia in February 2022, and to increased consumption following years of Covid.
The grains and oilseed markets were at the centre of this storm, which was exacerbated by unfavourable weather conditions in some producing areas.
Increased volatility in the grain markets prompted all participants along the value chain, in particular producers, end users and transformers, to seek efficient tools to manage their price risk in order to lock in margins and insure sustainability of their business.
Growing volume Euronext MATIF
This trend has been reflected in growing volume across Euronext MATIF considered as a very useful tool for market players across the world to lay out the price over last years.
The Euronext MATIF grains franchise has grown significantly over the last five years, with volumes increasing by 40%.
Liquidity has continued to build in the milling wheat contract, which has become a global benchmark.
Euronext Milling Wheat, Rapeseed and Corn Futures & Options
Average Daily Volumes and Open Interest
Source: Euronext Group
Options have become an attractive hedging tool over futures over last few years following increased volatility in the markets leading to higher margin requirements by clearing houses.
Milling Wheat Options exceeded an average volume of 9,000 lots per day in 2022:
Euronext Milling Wheat Options (OBM)
Average Daily Volume and Open Interest
Source: Euronext Group
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