ICE Futures Canada has received approval to list a new Western barley futures contract, a notice to market participants from the exchange said.
The current Western barley futures contract months from March 2010 onward are to be delisted immediately. July ’09, October ’09, and December ’09 contracts will remain listed, ICE Futures Canada said.
The new contract will be listed under the same contract symbol (“AB”) and will begin trading on Monday, June 22, 2009. Months will include November ’09, January ’10, March ’10 and subsequent contract months. The new contract is the result of extensive consultation with an ad hoc Western barley committee and the contract committee. Participants on the committees included grain companies, feedlots, cash brokers, Futures Commission Merchants, producers, and other market participants.
The exchange said the new contract is expected to provide a more effective risk management and price discovery tool, by better reflecting the underlying market for western Canadian barley.
The most notable changes are that shipments will be made to the buyers’ facilities, with transportation paid by the warrant issuer and that the deliverable region will be located in southern Alberta. A new participant group, Barley Merchants, will be permitted to make delivery against the contract, in addition to the existing participant category of Merchant Multi-Commodity.