Changes to WCE barley contract?

[Ron]

Just looking at the basis and futures for july vs oct 2007 and wondering why the huge difference (-24 in basis, -26 in futures). Did I read something about a change in delivery points?
Thanks

[charliep]

Western barley futures delivery point effective October 2007 has moved from Lethbridge to a par area (delivery area if you like) around Saskatoon. The maps of the delivery areas are located at:

http://www.wce.ca/DeliveriesCashMarket.aspx?first=registeredelevator s&Commodity=AB&Map=1

Contract specifications are at:

http://www.wce.ca/ContractsMarketInfo.aspx?first=contractspecificati ons&Commodity=AB#2

I will get others to fill in the blanks but my understanding is the changes were made to reduce basis risk/make the contract more effective for feed barley users. The other issue is to make the contract more useable in an open market setting by moving the pricing point from the major consumption area to a major production area. Finally, the contract is likely more useable as a pricing point for malt barley - again the arguement being more stable basis levels. On the last point, the comment would apply whether open market or CWB - even the CWB (on a limited test basis) is looking at offing maltsters/brewers basis type contracts off western barley futures.

We have both barley producers and users in this discussion area. What are your thoughts?