MINNEAPOLIS — The board of directors of the Minneapolis Grain Exchange unanimously voted to remove the U.S. origin condition for wheat delivered against its hard red spring wheat futures contract.
“Removal of this delivery condition is the first step of a multi-phase approach by our contracts committee in ensuring the M.G.E.X. hard red spring wheat contract is adaptable to the global marketplace,” said Richard A. Dusek, M.G.E.X. board second vice-chairperson and contracts committee chairman.
The change allows for hard red spring wheat from outside the United States to be delivered provided it meets contract specifications, the M.G.E. said. The changes will take effect no later than the May 2013 contract.
“M.G.E.X. is taking the first step envisioned for enhancing the appeal of the hard red spring wheat futures contract to global market participants by ensuring it meets the needs of buyers and sellers of spring wheat from around the world,” said Mark G. Bagan, president and chief executive officer of the M.G.E.X. “These decisions will open the door to new market participants seeking price discovery and a place to meet their risk management needs by using the M.G.E.X. HRSW futures contract.”