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ICE delists feed wheat

Having reviewed its alternatives, ICE Futures Canada has delisted its feed wheat contract effective Oct. 16, the last delivery day of the October 2008 contract.

The Winnipeg commodity exchange pulled its December 2008 and subsequent feed wheat futures contract months from trading in May, pending a review by a feed wheat subcommittee of its board of directors.

In a notice Oct. 10 to exchange participants, ICE said its subcommittee met several times over the summer to review “various aspects” of the feed wheat market and analyze possible alternatives in terms of its contract specs.

ICE said its subcommittee found “a number of fundamental market factors which have contributed to the decline in feed wheat futures trading volumes.” It also found that “other contract designs – such as cash settlement or index-based – carried with them their own difficulties which would likely make them non-viable.”

ICE also said its current Western barley futures contract “carries a high degree of correlation with the domestic feed wheat market, and could serve as an effective hedging tool for feed wheat.”

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