A Southeast Asian agri-food processor and a U.S. commodity trading firm are pairing up to enter the deregulated Prairie grain and oilseed supply chain.
Singapore-based Olam International and Kansas City’s Lansing Trade Group have announced a new 50-50 joint venture, Lansing Olam Canada, to “originate and merchandise Canadian grains and oilseeds.”
The two companies said their complementary strengths provide “a strong platform to establish a meaningful position in the liberalized western Canadian grains marketplace.”
Olam ranks among Singapore’s top 40 companies by market capitalization and is already involved in direct sourcing and processing in “most major producing countries” for products including cocoa, coffee, cashews, sesame, rice, cotton and wood.
Lansing last year moved over 15 million tonnes of grain, feed and energy products and already owns or leases about 800,000 tonnes’ worth of commodity-handling facilities in the U.S.
The two companies didn’t say in their release where Lansing Olam Canada will set up shop. Lansing maintains offices in Winnipeg and in Chatham, Ont.; Olam has no Canadian desk.
WCE stretches trading day
Winnipeg’s commodity exchange for canola, wheat and barley is stretching its trading day by 45 minutes as of June 25.
The close of trading and settlement time on all futures and options products at ICE Futures Canada will be 2 p.m. CT.
The closing time until now has been 1:15 p.m. CT, and the settlement window for futures contracts ran from 1:14 p.m. to 1:15 p.m. The settlement window will now be 1:59 p.m. to 2 p.m.
The Winnipeg exchange said it’s making the move to line up its close of trading and settlement time with those for grains and oilseeds futures and options contracts traded on other North American futures exchanges.
The change affects ICE Futures Canada’s products for canola, barley, durum, milling wheat and western barley.
The opening time for all those markets remains the same.