Brazil has a long history of ever-changing currency forms that began in the 16th century with Spanish coins first making an appearance. From then on, gold, copper and paper were also introduced. Brazil has the largest economy in South America, but in 1994, Brazil was quaking under rampant inflation. The economic solution that was subsequently developed — the Plano Real (Real Plan) — involved a monetary reform package that introduced the modern-day Brazilian Real.
|Brazilian Real Contract Specifications|
|Contract Size||100,000 Brazilian reais|
|Trading Hours||CME Globex: Sundays: 5:00pm – 4:00pm CT next day.
Monday – Friday: 5:00pm – 4:00pm CT the next day, except on Friday – closes at 4:00pm and reopens Sunday at 5:00pm CT.
|CME ClearPort: Sunday – Friday 5:00pm – 4:15pm CT with a 45–minute break each day beginning at 4:15pm|
|Minimum Price Fluctuation||$.00005 per Brazilian real increments ($5.00/contract).|
|Product Code||CME Globex: 6L|
|CME ClearPort: BR|
|Listed Contracts||Consecutive contract month listings (Jan., Feb., Mar., Apr., May, etc.) for a total maturity range out 10 years|
|Settlement Method||Financially Settled|
|Last Trade Date||On the last business day of the month, at 9:15 a.m. CT, immediately preceding the contract month, on which the Central Bank of Brazil is scheduled to publish its final end-of-month (EOM), “Commercial exchange rate for Brazilian reais per U.S. dollar for cash delivery” (PTAX rate).|
|Settlement Procedures||BRL/USD Futures Settlement Procedures|
|Position Accountability||30,000 for a single month; 60,000 in all months|
|Block Trade Eligibility||Yes.|
|Block Minimum||50 Contracts|
|Exchange Rules||These contracts are listed with, and subject to, the rules and regulations of CME.|
|Source: CME Group|
Brazilian Real Facts
Brazilian Real futures allow traders to assess value against the U.S. dollar, as well as the opportunity to address risk from currency fluctuations in other foreign trade markets.
The Central Bank of Brazil is responsible for setting monetary policy as it pertains to its currency. This includes, but is not limited to the setting of interest rates. Interest rates are fundamental in determining currency values as money is pumped in or out of the marketplace, and overall can have an effect on the value of the Brazilian Real.
Source: Central Bank of Brazil
Last updated September 2015
Recent Posts on the Brazilian Real
- Ag Knowledge: Brazil Real Bull Run Could be Getting Tired (7/21/2017)- This is a sample entry from Tom Dosdall’s newsletter, Technical Ag Knowledge, published on Friday, July 21, 2017. The stronger Real has been a helpful outside market for US farmers. Keep an eye on how it handles this resistance area…
- Breaking News: Brazil Real Down 6% on Bribery Allegations Against President (5/18/2017)- This is a sample entry from Tom Dosdall’s newsletter, Technical Ag Knowledge, published on Thursday, May 18, 2017. In turn this could trigger a wave of soybean and corn selling among Brazilian farmers as their goods are prices higher in local currency terms. Developing… July Soybeans last trade 9.55 (-21’0) July Corn last trade 3.65… Read more.
- Ag Knowledge: Keeping an Eye on Brazil’s Currency (5/9/2017)- This is a sample entry from Tom Dosdall’s newsletter, Technical Ag Knowledge, published on Tuesday, May 9, 2017. Old crop US soybeans remained in favor this year longer than normal due to farmers in Brazil holding back on selling due to a strong domestic currency. A weaker Brazil currency helps Brazilian producers to attract export… Read more.