Ireland’s top agricultural businesses stand to benefit from Euronext’s €137m merger with the Irish Stock Exchange as the pan European exchange weighs a post-deal expansion of its soft commodities products.
Yesterday Lee Hodgkinson, head of markets and global sales at Euronext, said these complex trading instruments may help large-scale agricultural players “manage risk”.
Euronext already operates a portfolio of soft commodities options, most notably in rapeseed, corn and milling wheat.
Rather than create a separate market here, Mr Hodgkinson said the bourse operator plans to expand these futures and options contracts into Dublin.
That could open up a new funding stream for co-ops, silo owners and large wholesale producers.
Options give the right but not the obligation to buy a financial contract in the future, allowing companies greater hedging flexibility. According to Mr Hodgkinson such a strategy may be an advantage for business grappling with EU quota schemes and the Brexit uncertainty.
(Source – https://www.independent.ie/business/farming/irish-agriculture-now-in-line-for-options-boost-36368843.html)