Relief may be on the way for producers whose cash prices are far below futures levels. Following months of meetings about the disconnect between futures and cash prices, the CME Group is requesting public comment on proposed amendments to the Chicago Board of Trade's wheat futures contracts that aim to fix the problem.
Proposed changes include:
- Three new delivery areas (shuttle train loading in NW Ohio at -20¢, barge loading on Ohio River from Cincinnati to the Mississippi River at 0¢ and barge loading on Big Muddy from St. Louis to Memphis at +20¢)
- Higher seasonal storage charges (8¢ from July through November, then 5¢ for the balance of the year)
- Reduced vomitoxin allowed (2 parts per million instead of 3 ppm), with specified discounts for more.
The delivery and storage changes would be effective with July 2009 contracts; vomitoxin, September 2011.