NYSE Liffe proposed changes to the trading calendar for its Paris milling wheat future to more closely resemble the delivery schedule on the Chicago Board of Trade, the largest market for buying and selling the grain.
The derivatives arm of NYSE Euronext (NYX) is proposing to revise the contract’s delivery months to September, December, March and May, according to an e-mail sent to grain market operators last month that was confirmed today by Lionel Porte, Liffe’s senior product manager. The exchange is still consulting with operators, and no decision has been made, Nicholas Kennedy, Liffe’s head of business development, said by phone yesterday.
NYSE Liffe started a review of the Paris wheat contract in July and in November announced it would suspend futures for delivery from November 2015 onward. The exchange “constantly” evaluates its commodity derivatives contracts to ensure they best reflect the underlying physical market, spokeswoman Caroline Tourrier said in an e-mailed comment.
“We’re consulting on quality criteria, delivery points and potential modification of the calendar,” Kennedy said. “There’s no news. We’re making progress. There’s nothing decided.”
The exchange now has January, March, May and November as contract delivery months, while CBOT uses March, May, July, September and December for its wheat contract.
In the e-mail sent to market operators in April, NYSE said it “wishes to carry out the following revisions,” before listing an additional delivery point, a new quality criterion and the revised delivery schedule. The changes would take effect from the now-suspended delivery months, according to Liffe. The proposal was reported by Reuters last week.
The port of Rouen on the Seine River downstream of Paris is the only delivery point for the milling wheat contract, and NYSE Liffe said it wants to add an Atlantic Coast port that handles wheat for exports.
The exchange also proposed the inclusion of a Hagberg falling number criteria of 220 in the contract specification, referring to an indicator of sprouting damage and baking quality. Senalia, a storage operator that acts as the wheat contract’s sole point of delivery, last year required the Hagberg level as an additional quality criteria for grain it receives.
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