Wednesday, October 19, 2011

End of Canadian wheat board - ascent of futures

The end of the Canadian wheat board is nearing. The CWB has had a monopoly on marketing western Canada wheat since 1942. Legislation for its elimination may be passed by the end f the year. The ICE futures exchange, through its Winnipeg exchange is preparing to offer futures on milling, durum and barley. The Minneapolis Grain exchange is expected to see more trading on its hard red spring wheat contract. The hedging of grains will be placed in the hands of farmers and will not be based on prices provided by the government. This is a major development which will change the movement of grain exports around the world.

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