Read here Euronext’s climate reporting is based on the four key elements of the TCFD recommendations: Governance, Strategy, Risk management, and Metrics and Targets.

The Task Force on Climate-related Financial Disclosures (TCFD) established by the Financial Stability Board (FSB) developed voluntary recommendations on climate-related information that companies and organisations should disclose to help investors, lenders, and others make sound financial decisions.

TheTCFD Recommendations provide a framework for companies to respond to the increasing demand for transparency on climaterelated risks and opportunities from investors.

Download here the full report.

In 2023, we are re-starting the publication, each quarter, of the Euronext Commodities newsletter. It will contain information about new Euronext projects and changes, as well as news about the progress of the clearing migration and some interesting data.

On the market, the first quarter of 2023 was marked by the uncertainties around the renewal of the Black Sea Grains Corridor, the harsh competitiveness of Russian wheat, and the droughts in Argentina depleting corn and soybean production.

Since the beginning of the year, prices on Euronext MATIF contracts are following a bearish trend and went back to below €250/ton for wheat (EBM) and corn (EMA), and €450/ton for rapeseed (ECO), back to 2021 levels. Despite a calm activity in January and February, Q1-2023 remained +70% higher than Q1 five years ago. This is due to the March performance, which is our highest volume month since November 2021, led by Rapeseed Futures (+80% m/m) and Wheat Options (+150% m/m).

The Euronext Commodities team

Euronext MATIF contracts ADV and OI per month

Source: Euronext Group

One year of conflict between Ukraine and Russia

February marked the one-year anniversary of the beginning of the conflict between Ukraine and Russia. Indeed, on 24 February 2022, the war exploded on Ukrainian soil, triggering a series of unpredictable events on the global commodities markets, especially on grains. As a reminder, Ukraine represents 12% of global wheat exports, 20% of global corn exports and 50% of global sunflower seeds exports (a substitute for rapeseed). The country had to stop its grains exports from the Black Sea, which led to an imbalance between global supply and demand. Euronext MATIF contracts reached historic record-high prices, €450€/ton for wheat, €420/ton for corn and €1,094/ton for rapeseed.

Since August 2022, and the opening of the Black Sea Grain Corridor, flows from the Black Sea have been able to get back to an acceptable rhythm. Ukrainian grain and oilseed exports are now back to their 5-year average, which has reduced pressure on prices. Even if prices on Euronext MATIF contracts are now back to the level of 2021, some uncertainties remain at each renewal of the Black Sea Grain Corridor contract. The Corridor was extended on 18 March for at least 60 days.

Corn and Durum Wheat programme

The average daily traded volumes of our Corn Futures have increased by 62% between 2018 and 2022. This results from growth in volumes, liquidity and open interest over the last five years thanks to the strong interest of market participants and also to changes that came into effect at the end of 2019, including the introduction of Ghent (Belgium) and Dunkirk (France) as new delivery points. 

To further support this contract in developing liquidity to the next level, we introduced an innovative fee scheme on 1 February 2023.

This trading fee scheme is based on the volume traded for each contract by a Euronext member over the billing month:

This fee scheme also applies for Durum Wheat Futures.

Moreover, we are launching a consultation about the Corn Futures contract (EMA). This will take place during May and June. If you are interested in taking part in the discussion, please contact us at commodities@euronext.com

Euronext Clearing migration

The Euronext teams are working actively on the set-up of a fully-integrated clearing house, Euronext Clearing. This integration will transform the trading landscape in Europe and strongly support the development of the Euronext MATIF franchise. We will provide further information such as detailed timelines and milestones, as well as go-live dates, in the coming weeks.

The Commodities team at events

Paris Grain Conference

In January, we were pleased to once again be silver sponsor of the Paris Grain Conference, an unmissable event where the French industry meets.

Euronext Annual Conference

Strengthening Europe’s leadership in the wheat market in times of global instability

On 7 March, the Euronext Annual Conference took place in Paris. During this event, we organised a roundtable on "Strengthening Europe’s leadership in the wheat market in times of global instability" with Jean-François Lépy, CEO of Soufflet Négoce by Invivo, Dominique Chargé, CEO of La Coopération de France, and Jean-Baptiste Clavel, Business Development Specialist at Crédit Agricole. The discussion was moderated by Anne-Laure Paumier, Director of International Affairs at Intercéréales. We would like to thank again the speakers and all those who attended the event.

Watch the replay of the full conference

The MATIF: meeting between the agricultural and the financial sectors

To coincide with the Euronext Annual Conference, CACEIS organised a workshop around "The MATIF: meeting between the agricultural and the financial sectors" with Jean-François Lépy from Soufflet Négoce by Invivo, Maxime Ecotière from Twenty First Capital, Cédric Renault from CACEIS and Elad Hertshten from Futures First. Nick Kennedy, Head of Commodities at Euronext was moderator.

Access the replay

Agro Paris Bourse

In mid-March, we took part in the traditional Agro Paris Bourse event, combined this year with the Intercéréales day. Thank you to those two important partners in the European grain industry, helping dialogue and exchange of information between leading players.

Find out more

See all our MATIF Commodities contracts on the Euronext Live Markets website.

Contact our team: commodities@euronext.com



 

How is Ferde contributing to the development of green cities and clean transportation networks?

Ferde AS is a regional toll collection operator, headquartered in Bergen, Norway. Ferde’s responsibility is to ensure efficient toll collection and cost-effective financing of infrastructure projects in the south and west part of Norway. Ferde is owned by the three counties where we operate, and has a state mandate to finance infrastructure projects that are approved by local municipalities and the Norwegian state. The projects are partially financed by fundings from toll collection and partly by the state.

Toll collection contributes to financing increased access to public transport solutions such as light rail, trams and buses, as well as efficient accessibility for bicycles and pedestrians. Toll collection is also used as an instrument for traffic regulation in the cities. Given our mandate, we are contributing to the development of green cities. The overarching objective is to ensure an efficient, accessible, safe and environmentally friendly transport system that covers society’s needs for transport and promotes regional development.

An increasing part of infrastructure projects financed by Ferde are related to city environment plans with focus on investments in bus lanes, bicycle lanes, trams and pedestrian pathways, which is where green financing can contribute most.

Ferde has carried out a sustainability mapping where our Green Finance Framework and procurement are the two significant areas where we can influence the most. In addition to being Eco-lighthouse certified, our governance systems are certified according to the ISO 9001 and ISO 14001 standards. Ferde is subjected to the requirements of the EU’s Transparency Act, which shall promote businesses’ fundamental respect for human rights and decent working conditions as part of social sustainability. Ferde established a framework for following up suppliers and carried out a risk assessment prior to the Act came into force. Our Code of Conduct is, together with the environmental policies, part of the steering documents for our sustainability framework.

Ferde’s updated framework is aligned with the EU Taxonomy: what are the main challenges when using this tool?

The green finance framework provides Ferde with the option of issuing green bonds and loans to finance public infrastructure projects with environmental benefits. It is the stated objective of the government’s policy to increase the accessibility and efficiency of low-carbon transport alternatives and to reduce dependency on personal car transportation.

As part of the EU Taxonomy Regulation, and in order to be considered sustainable and to comply with minimum social safeguard, an activity must substantially contribute to at least one of six environmental objectives without harming the other objectives (“Do No Significant Harm”). The DNSH criteria are developed to make sure that progress towards some objectives is not made at the expense of others and recognises the relationships between different environmental objectives.

As a toll collection company, Ferde does not participate in the decision-making process around which specific infrastructure projects that will be initiated in the region, and we have limited potential to influence the design and running of the projects. However, we are owned by the same counties that are in charge of executing the projects, and we are instrumental in ensuring efficient toll collection and beneficial terms of financing. As we do not take part in the actual construction of the projects, a challenge is therefore to identify the DNSH criteria. The assessment of the DNSH criteria has mainly been based on information from the counties and partners where we have identified relevant Green Projects. It is essential to have good and constructive dialogues with our main stakeholders.  

A few years ago, Ferde was entirely financed through bank loans, now the company mostly taps in the bond market. What are the benefits?

Some of the benefits of being in the bond market are reduced financial costs and increased competition. We have also obtained a diversification of the investor base. By being in the bond market, Ferde has established itself as a significant actor in the financial market. This has resulted in a more flexible and solid access to financing. More and larger issues result in a reduced liquidity premium.

Ferde has various projects that are financed differently based on qualitative assessments for each individual project. Each of the infrastructure projects are unique and we consider them differently based on the assessments carried out. The choice of funding therefore depends on the nature of each individual project.

Can you tell us about your experience in issuing green bonds?

In 2019, Ferde published an inaugural Green Bond Framework, aligned with the ICMA Green bond Principles from 2018, and became the first regional toll company in Norway to issue a green bond. Since then, best practice has developed, the EU has increased its ambition levels within sustainable finance, and Ferde, as well as our owners, have taken steps to increase the focus on sustainability. In 2022 we renewed our Green Finance Framework. It has been established to mirror best practice, and to enable us to increase the share of green financing in the portfolio. The framework is aligned with the ICMA Green Bond Principles and the LMA Green Loan Principles from 2021.

The international capital market is increasingly conscious towards sustainability – and it is here to stay. Green loans give us access to further diversification of the investor base and increased interest from stakeholders. By achieving better conditions and a certain “greenium” by issuing green bonds, our gain is in total exceeding the costs and therefore strengthening Ferde as an issuer.

Ferde has a diversified portfolio that consists mostly of bonds, included green bonds, in addition to certificates and bank loans. This makes us more robust and flexible which is important in our goal to contribute towards a more efficient financing of infrastructure projects.