The death knell had long ago sounded, but the Winnipeg Commodity Exchange ended speculation about the future of its feed pea futures when in December it started pulling off the furthest-out months of contracts. Pending regulatory approval, May 1999 will be the last month traded before the exchange switches to a new field pea futures contract.
At its peak in February 1996, feed pea futures saw interest of 2,700 contracts. At its lowest moments, interest dwindled to a handful.
“It’s just been a long, dreary death,” said Brian Clancey of Stat Publishing.
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Based on feed pea export volumes, Clancey said a vibrant futures contract could have attracted at least 20,000 contracts per year. But the contract lost all hope a few months ago when it became apparent only two companies were using it, and they were trading peas rather than hedging their sales and purchases.
Hedgers and speculators, both essential players in a futures market, buy and sell futures contracts but hope never to have to take or make actual physical delivery of the commodity.
Since Canadian farmers plant about as many peas as they do flax, the exchange hopes the new pea futures contract will attract similar volumes.
Spokesperson Sandra Craven said 157,000 flax contracts traded in 1997-98, an average of 601 per day.
She noted it was a busy year for the flax contract, with volumes up 70 percent from 1996-97.
