Minneapolis Opens Door To Canadian Wheat

[gustgd]

The Minneapolis Grain Exchange has opened the door to delivery of Canadian wheat against its Hard Red Spring Wheat futures contract.

The Exchange's Board of Directors on Tuesday voted in favour of removing the requirement that delivered wheat must be of U.S. origin.

"It's the first step of a multi-phase approach to enable global market participants to find a better place for their hedging," says Rita Maloney, MGEX's Director of Marketing and Business Development.

How did the end of the Canadian Wheat Board's single desk factor into the decision to allow non-U.S. wheat?

"I would say it was one of several factors that were being considered by our contracts committee. It was one of, but not THE factor," she says. "We do see this as an area of growth potential for us as it will allow producers, elevators and marketers across Canada to be able to not only use the contract for hedging, but also be part of the delivery process in the future."

The change will be effective no later than the May 2013 contract month.

Meanwhile, ICE Futures Canada in Winnipeg is working on creating its own spring wheat futures contract based in western Canada, leading some traders to question whether there is room in the market for spring wheat contracts at both exchanges.

"We feel we have a very good contract, and we want to ensure that we have as much potential as possible. So if there is room in the space (for both contracts), that will be up to market participants to decide," says Maloney

[wd9]

imagine that, free market moves ahead without the Stalinist rule of Canadian wheat.

[ColevilleH2S]

Not good news for the ICE contract. But not a death-blow either. It is encouraging to see MGEX sees the new ICE contract as a threat(viable) and they are taking measures to undermine it even before it get started.

[wilagro]

Yes, they had hardly wait to get their greedy little hands on some cheap Canadian wheat.

The gamblers are all falling in line for their rightful spoils.

[checking]

Oh no!, Wilagro. That can't be true. I have it on good information from chuckchuck that the border will be slammed shut on Canadian wheat, cheap wasn't mentioned. Their hands will only be filled with paper wheat which is a softwood lumber agrement!!!!

[Burbert]

This is just posturing to attempt to
influence the Comedian gobermont and all
the privateers waitin to get the cheap
Comedian grain.................

[kryger]

$10 wheat. Shit, now I have to pay some income tax. I think I want the board back. LOL

[jdepape]

MGEX announces they will allow "non-US" wheat
delivered against their spring wheat futures. We
all know that means "Canadian" wheat.
The CWB has a representative on the MGEX
board of directors and the board voted
unanimously for this change (including the CWB
rep).

ICE Futures in Winnipeg announced long before
this that it would be launching a spring wheat
futures contract.

Here's what I don't get.

How can the CWB have any credibility arguing to
keep the single desk on the grounds of
preserving jobs in Winnipeg, when it votes in
favour of a competing exchange to the one in
Winnipeg?

Success with ICE futures means a more robust
grain industry in Winnipeg, which will lead to
more companies locating there and - more jobs
in Winnipeg and Manitoba.

Not only is it hypocritical, it's clearly working
against the interests of the Canadian grain
industry.

Can you say "conflict of interest"?

[jensend]

mgex says come and trade on our exchange but it still remains to be seen if the american govt is as accomodating about foreign wheat being delivered into the states. free trade is not exactly a popular buzzword down there in spite of the propaganda. did kent conrad hate the wheat board or the canadian wheat?