PARIS, Jan 26 (Reuters) - Euronext will launch European sugar futures at the end of this year in anticipation of the ending of the European Union’s sugar quota system, the exchange said on Tuesday.
Euronext will offer Euro-denominated contracts for white sugar that will be physically deliverable, Nicholas Kennedy, head of commodities business development at Euronext, told reporters.
The EU will scrap its quota regime for sugar in 2017, following the abolition of milk quotas last year, in a reform expected to lead to higher output and increased price volatility.
The exchange had said a year ago it was also looking at sugar, biofuels and metals as potential areas for expansion.
Euronext has made commodities one of its growth priorities since being spun off from Intercontinental Exchange in 2014, overhauling markets like wheat and dairy, and entering the energy sector via the launch of wood pellet futures.
Like in dairy, the development of sugar futures is aimed to coincide with the liberalisation of European Union production quotas. (Reporting by Gus Trompiz; Editing by James Regan)