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LIFFE (European future market) considering malt barley contract

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    LIFFE (European future market) considering malt barley contract

    Found the following article in today's e-malt interesting.

    Start quote: EU: NYSE Liffe to launch malting barley futures in the next quarter

    NYSE Liffe, the European derivatives exchange of NYSE Euronext, will launch malting barley futures in the next quarter and expects them to be as popular as ****seed contracts, Reuters reported on December, 1.

    Malting barley crops an annual 12 million tonnes in the European Union, or about 20 percent of barley output in the 27-member bloc, the rest being used mainly for animal feed.

    NYSE Liffe has been working on Paris-based barley contracts since early 2008 in response to demand from grain cooperatives and malt manufacturers seeking to hedge over extended periods, Lionel Porte, product manager at NYSE Liffe, said in an interview.

    "There aren't any futures contracts anywhere in the world at the moment for malting barley," Porte said, noting the demise of malting barley futures based in Hanover, Germany.

    The absence of futures for malting barley had even led some operators to try and hedge with wheat derivatives, given a correlation in the price movements of the two crops, he added.

    Contract specifications for the barley futures have been agreed by barley producers, malt manufacturers and brewers from across Europe, and NYSE Liffe was now awaiting approval from its clearing house and France's financial regulator to proceed.

    End quote.

    #2
    I found the 12 mln tonnes malt barley production in the EU interesting out of a crop of 60 mln tonnes. Malt barley use in the EU is 20 % than our (Canada's) entire barley crop. US malt barley use is about 3 mln tonnes out of a crop of 5 mln tonnes.

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      #3
      I think it is a great idea, hopefully industry participants and speculators will trade the contract right away when it comes out. That is if the socialist french government allows it.

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