The revised contract is expected to be available for trading in early June, 2003 pending non-disapproval by the Manitoba Securities Commission (MSC).
The most significant contract changes include pricing in U.S. dollars, the inclusion of a U.S. delivery region and Thunder Bay delivery, generic warrant and delivery certificates, and reducing the maximum deliverable dockage from 14% to 10% (with par level of dockage remaining at 8%.) Shipments made from the U.S. will be subject to a $7.50 (US) discount and from Thunder Bay at a $17.00 (US) premium to the par price. Alternate deliverable grades to the par deliverable grade of No. 1 Canada Western Flaxseed apply to U.S. delivery points and have U.S. grade specifications.
Other enhancements include changing the contract delivery months to include October and December and eliminating September, November and January delivery months.
"Extensive research on the part of the Winnipeg Commodity Exchange and discussions with industry participants has led to significant change to the WCE flaxseed futures contract," said Bruce Love, WCE Vice President of Marketing and Corporate Development. "These changes are expected to encourage more participation in our markets as the WCE is committed to providing a superior hedging tool for the flaxseed industry."
Winnipeg Commodity Exchange Inc., established in 1887, is Canada's only agricultural futures and options exchange. WCE offers futures contracts on canola, canola meal, flaxseed, domestic feed wheat, and western barley. Options contracts are available on canola, flaxseed, domestic feed wheat, and western barley. For more information on the Exchange, visit www.wce.ca.
