Durum Wheat Futures Contract Amendments Approved

The Minneapolis Grain Exchange (MGE) announced changes to the durum wheat futures contract, traded on the Exchange since February 1998. These changes were approved by the Commodity Futures Trading Commission (CFTC) on February 28, 2000. The revised contract raises the quality of the deliverable commodity to closely resemble U.S. #2 hard amber durum wheat standards, with the following exception: 80 percent minimum hard and vitreous kernels as opposed to the U.S. #2 standard of 75 percent minimum. Additional standards set by the MGE are: minimum falling number of 300, protein at 12.5 percent minimum and allowable moisture at 13.5 percent maximum. A comparison of revised contract specifications, former contract specifications and U.S. #2 standards is available at www.mgex.com. "We've had a concern that producers were not participating because the contract specifications created risks for them. By adjusting the contract specifications, we hope producers will realize significantly less risk in using the contract and will participate more," said John C. Miller, president of Miller Milling Company and chair of the MGE board of directors. "These changes will expand marketing opportunities for producers, as well as increase trade activity and participation in the contract in general," said Kent Horsager, president of Horsager Trading Company and MGE board member. The modifications are effective with the July 2000 contract month and apply to open interest and/or any trades executed in all subsequent months. The Minneapolis Grain Exchange, established in 1881, is the only futures market for hard red spring wheat, white wheat, durum wheat, black tiger shrimp, white shrimp and on- and off-peak Twin Cities Electricity futures and options. For more information about the Exchange, visit http://www.mgex.com