WINNIPEG (Staff) – The Winnipeg Commodity Exchange announced last week that its Canadian Domestic Feed Barley contract will change from an in-store delivery to a free-on-board contract.
Beginning with the March 1996 contract, buyers will no longer have to pay elevation to the elevator, said John DePape, spokesperson for the exchange. He said the change should add value to the futures price and attract more interest in the contract.
“The perception was that because not all elevator companies charged the same amount, that there was ambiguity and uncertainty in terms of the price.
“If it does what we hope, which is add volume in the contract and add some clarity in the pricing, then it should provide more trade, which is good for both (buyers and sellers).”
While the futures price will increase, DePape said the farmgate price should not be affected.
