MGEX cleared for non-U.S. wheat on HRSW contract

notafarmer

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U.S. federal regulators have approved MGEX?s plan to remove U.S. origin as a condition of delivery on its hard red spring wheat (HRSW) contract.

The Minneapolis grain exchange said Thursday it?s received approval from the Commodity Futures Trading Commission (CFTC) for this change and others to its "flagship" HRSW contract.

With the U.S. origin condition lifted, "spring wheat market participants from around the world can choose to deliver spring wheat in satisfaction of open MGEX HRSW futures positions," the exchange said in a release.

The removal of the U.S. origin requirement will take effect with the September 2012 contract month, MGEX said.

MGEX said it has also added a deoxynivalenol (DON, or vomitoxin) specification to the HRSW contract, effective with the May 2013 contract month, for a maximum two parts per million (ppm) for spring wheat delivery.

Vomitoxin levels above two ppm would be delivered with a 20-cent per bushel discount, while levels above three ppm vomitoxin "will not be deliverable on the HRSW contract," MGEX said (all figures US$).

Read more at http://agcanada.com/daily/mgex-cleared-for-non-u-s-wheat-on-hrsw-contract/
 
 
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