NYSE Liffe in Paris will begin offering grain contracts that expire as far out as January 2015 to improve commercial users’ ability to hedge prices, the exchange said.
Wheat, barley, corn and rapeseed contracts will all be extended beyond their current 2013 expiration dates, said Nicholas Kennedy, head of business development for commodity derivatives for NYSE Liffe. The change will take effect on March 13. The August wheat and barley contracts will be eliminated after they expire this year, he said by phone today.
“We know from regular discussions with the users of the contracts that they were looking for hedging tools going out further,” Kennedy said. “From a commercial perspective you can hedge out to an extra crop year, which they couldn’t do.”
The August contract for wheat traditionally had little volume and wasn’t needed, Kennedy said. The August 2012 contract had 31 trades today compared with 84,182 for May and 85,313 for November, he said.