The canola meal futures contract, which compliments the successful WCE canola futures contract, will be of particular interest to canola processors, feed mills and the dairy/livestock industry for price discovery and risk management.
“Research and discussions with industry participants indicated that there was a lot of basis volatility in the relationship between cash canola meal values and soymeal cash/futures values. This highlighted the need for a new price discovery tool to better serve the price risk needs of the canola meal market,” said Lyndon Peters, Senior Economist at WCE.
The contract, which will be traded and margined in US dollars, will have eight delivery months: January, March, May, July, August, September, October, and December. The daily price movement limit for the 20 metric tonne contract will be US$20/tonne above or below the previous settlement price, with a minimum price fluctuation of US$0.10/tonne.
The last trading day for the contract will be the business day prior to the 15th calendar day of the delivery month and the deliverable specifications are:
Bulk canola meal with:
- Protein, % by mass, minimum 34%
- Fat (Oil), % by mass, minimum 2%
- Moisture, % by mass, maximum 12%
- Crude Fibre, % by mass, maximum 12%
- Glucosinolates, micromoles per gram sample, maximum 30
The pricing basis will be free on board from listed facilities in the Par region located in Saskatchewan/Manitoba. Delivery can be made from listed facilities within any of the specified regions at listed premiums.
Futures trading hours at WCE are from 9:30 a.m. to 1:15 p.m. CT, Monday to Friday (closed for listed holidays).
WCE is Canada’s only agricultural futures and options exchange. WCE offers futures contracts on canola, canola meal, flaxseed, domestic feed wheat, western barley, oats, and field peas. Options contracts are available on canola, flaxseed, feed wheat, and western barley.
For more information on this new contract and other WCE derivative products please visit the WCE Website – www.wce.mb.ca. Reference should be made to the WCE General Bylaw and Rule for complete and current details on the canola meal futures contract.
