EU Malting Barley Futures To Begin Trading Early 2010

A malting barley futures contract will begin trading in Liffe/Euronext from early 2010 (with Nov '10 the first month offered), according to media reports.

The contract has been almost two years in the making, as different parties quibbled over the exact contractual specifications.

Incograin - Paris' trade association of commerce and grain - wanted a more "flexible" spec than the maltsters, which would potentially allow any old floor sweepings to be delivered against the contract.

Fancy that, the French being difficult eh?

It would seem that after months of prevarication a spec of min 95% germination, max 14.5% moisture and max 11.5% protein have finally been agreed for a futures contract basis delivery to Antwerp/Ghent.

Let's hope it proves more successful than the last barley futures contract we had, London barley futures ceased trading in 2003. Who remembers them? I'd been in the trade for six months before I realised the contract wasn't called "London barley - no lots traded today".

They may have timed things just right with EU barley intervention closing next summer.