The Winnipeg Commodity Exchange has rewritten its feed wheat contract
so it conforms with the cash market.
The main change reduces the amount of fusarium allowed to 0.5 parts per
million of vomitoxin from two percent.
Fusarium headblight causes vomitoxin in grain. The previous
specification assumed that the disease would be judged visually.
But exchange economist Lyndon Peters said the feed wheat cash market is
now based on scientific measures, not eyeball judgments.
Traders found it difficult to use the futures contract because they
weren’t sure if it would reflect real cash market conditions.
The new contract design will allow higher vomitoxin levels, but at a
discount. A 56 pound bushel weight grade will also be allowed, in
addition to the usual 58 lb. standard.
The maximum deliverable level of sprouted grain is raised to 10 percent
from five.
The changes start with the July 2003 contract.
