WINNIPEG, MB, Oct 20, 2006 (Resource News International via COMTEX) -- In the event that the Canadian Government revokes the monopoly powers of the Canadian Wheat Board (CWB) and sets the stage for Western Canadian producers to have a "choice" environment, Winnipeg Commodity Exchange Inc., (WCE) will be ready with new dual wheat/durum futures contracts, an official with the WCE said.
"A lot of research and work has already been completed on these contracts and the WCE will have a dual wheat and durum futures contract developed should the dual market aspect become a reality," Will Hill, senior vice president of the WCE said.
Significant work has also been done on developing a dual barley market future, Hill said.
"We still have not finished testing these contracts on our electronic trading platform, nor do we have regulatory approval to post them at this time," he cautioned.
The regulatory approval for the dual wheat and durum contracts, however, was expected to come shortly, Hill said.
The Canadian Government, lead by Conservative prime minister Stephen Harper, is committed to marketing choice for western Canadian wheat and barley producers.
In an effort to achieve this goal, Agriculture and Agri-Food Canada Minister Chuck Strahl, who is also minister in charge of the CWB, has created a task force to recommend options on the way forward in implementing marketing choice for western wheat and barley.
The task force will identify technical and transition issues regarding how the CWB could operate in a marketing choice environment. It will also address other issues including, but not limited to, the tools needed for risk management, how to separate and fund market development and research activities, as well as how to deal with old export credit receivables.
The task force which was struck in late September has been asked to complete its work and report back to Strahl with recommendations in approximately four to six weeks.
Hill said that besides the dual marketing contracts, the WCE was also continuing its research on a few other potential contracts, including natural gas and cattle.
"These are just a few areas of the Canadian market that the WCE has taken a preliminary look at in terms of new potential contracts," he said.
No word was available on what the product would look like or when they may begin trading.
"The WCE is actually still quite a way from any kind of implementation on those kind of contracts," Hill said.
WCE established in 1887, has been facilitating futures contract trading since 1904. WCE is Canada's only agricultural futures and options exchange and offers futures and options contracts on canola, domestic feed wheat, and western barley.
The WCE was North America's first commodity exchange to fully convert to an electronic trading platform.
Source: http://news.tradingcharts.com/futures/0/3/84573830.html
"A lot of research and work has already been completed on these contracts and the WCE will have a dual wheat and durum futures contract developed should the dual market aspect become a reality," Will Hill, senior vice president of the WCE said.
Significant work has also been done on developing a dual barley market future, Hill said.
"We still have not finished testing these contracts on our electronic trading platform, nor do we have regulatory approval to post them at this time," he cautioned.
The regulatory approval for the dual wheat and durum contracts, however, was expected to come shortly, Hill said.
The Canadian Government, lead by Conservative prime minister Stephen Harper, is committed to marketing choice for western Canadian wheat and barley producers.
In an effort to achieve this goal, Agriculture and Agri-Food Canada Minister Chuck Strahl, who is also minister in charge of the CWB, has created a task force to recommend options on the way forward in implementing marketing choice for western wheat and barley.
The task force will identify technical and transition issues regarding how the CWB could operate in a marketing choice environment. It will also address other issues including, but not limited to, the tools needed for risk management, how to separate and fund market development and research activities, as well as how to deal with old export credit receivables.
The task force which was struck in late September has been asked to complete its work and report back to Strahl with recommendations in approximately four to six weeks.
Hill said that besides the dual marketing contracts, the WCE was also continuing its research on a few other potential contracts, including natural gas and cattle.
"These are just a few areas of the Canadian market that the WCE has taken a preliminary look at in terms of new potential contracts," he said.
No word was available on what the product would look like or when they may begin trading.
"The WCE is actually still quite a way from any kind of implementation on those kind of contracts," Hill said.
WCE established in 1887, has been facilitating futures contract trading since 1904. WCE is Canada's only agricultural futures and options exchange and offers futures and options contracts on canola, domestic feed wheat, and western barley.
The WCE was North America's first commodity exchange to fully convert to an electronic trading platform.
Source: http://news.tradingcharts.com/futures/0/3/84573830.html
Comment