Canadian Wheat Board To Use Winnipeg Commodity Exchange Western Barley Contract

Last week the Canadian Wheat Board (CWB) announced the introduction of Fixed Price Contracts and Basis Contracts for barley producers based on the revised western barley futures contract listed by Winnipeg Commodity Exchange Inc. (WCE). WCE revised its western barley futures contract in July 2006 to make it more responsive to the domestic market for barley on the prairies and make it more reflective of the international market for barley.

"We are pleased to see the CWB recognize the effectiveness of the revised contract as a price discovery tool for international prices by basing their forward contract products on our futures contract," said Will Hill, WCE Senior Vice President.

The revised contract has moved the pricing point from Lethbridge, Alberta to a par region in the prairies and is modeled closely on the current WCE canola futures contract. "We are confident that the changes made to the contract will make the western barley futures contract the global risk management and price discovery tool for barley in much the same way that the WCE canola contract serves the global canola market", Hill said.

The revisions to the contract, which take effect with the October 2007 futures contract, will serve the needs of domestic feed users and international players under the current grain marketing environment or when changes are made that allow for dual marketing.

Winnipeg Commodity Exchange Inc., established in 1887, has been facilitating futures contract trading since 1904. WCE is Canada's only agricultural futures and options exchange and North America's first fully electronic commodity exchange. WCE offers futures and options contracts on canola, domestic feed wheat, and western barley.