new feed wht contract on WCE

[bbrindle]

The new feed wheat contract on the Winnipeg Commodity Exchange (WCE) starts trading next week, starting with the October 2001 contract. The pricing point will no longer be Thunder Bay, but will be central Saskatchewan. So, if you hear a basis level for new crop wheat that sounds to good to be true, remember it is no longer based off Thunder Bay. This doesn't affect cash markets but should provide for better pricing discovery and hedging tools. For more info, see the WCE site at http://www.wce.mb.ca/

[charliep]

Just a note to let you know I will be following this contract/providing ideas on appropriate basis. Any initial thoughts from anyone on the concept of having a futures contract like this with delivery points a little closer to home/perhaps at least some better opportunity to deliver against futures if futures and cash get to far out of line?

[TOM4CWB]

Sounds Interesting!

What about having the CWB allow 2CPS, CW Feed Wheat hedging using this contract as an alternative to using Minneapolis Spring Wheat futures?