Changes Afoot For Paris Milling Wheat Contract
As things currently stand there is only one delivery point for the Paris milling wheat contract, the port of Rouen, which currently has an approved grain storage capacity of “only” around one million tonnes.
The popularity of the Paris milling wheat contract has increased dramatically in recent years, the current open interest in front month Nov 13 is the equivalent of almost 6.8 MMT. Clearly this presents a potential problem should enough traders decide that they wish to make delivery against the contract.
NYSE Liffe have therefore announced that they are to increase the storage capacity at Rouen, effective from November 2014. In addition they are to add the port of Dunkirk as a delivery point from September 2015.
As well as those changes they have also announced that also effective from September 2015 the new contract months will be September, December, March and May as opposed to the current delivery months are November, January, March and May.
I hate changes I do. It's usually the locks that get changed whilst I'm out of the house in my case. I came home a bit worse for wear one night and MrsN#2 said "why don't you just go out and have a couple of pints?" To which I said "what a great idea" as I put my coat back on and went out again. It's amazing how much of your stuff they can fit into one bin bag you know. Ah, happy days...
