FUTURES Wheat contract?
The Wheat Board on Monday will consider the possibilities of a futures contract on wheat Such a contract would be useful for farmers with the coming of a free market in the grain.
For years wheat growing and flour milling have been highly regulated in New Zealand, but they will almost certainly soon feel the invigorating breezes of the free market.
It is believed that a futures contract based on about 20 tonnes is being suggested. This would have a delivery value of about $5OOO at current prices.
As well as offering farmers and millers a means of hedging the risk of fluctuating Strain prices, the -iontract would provide an attractive low-deposit investment for
speculators. (The deposit might be about $250, compared with more than $lOOO on the U.S. dollar contract) Other futures contracts could be introduced this year using Government stock and a share-price index as bases. The firming kiwi dollar dominated the market again yesterday. The February U.S. dollar contract was down 185 points at the close on Wednesday’s last price.
PCPs (Interest-rate contracts) finished 10 points down on Wednesday last prices after fluctuating during the day. The wool contracts were very quiet
Details of trading: JUS Mth Open H/L Last Vol Feb. 1.9000 9000/8830 8900 35
Mar. 1.9150 9150/8940 8965 11 Contracts traded: 46 Open positions at Jan. 29: Jan. 272, Feb. 210, Mar. 2, Jun. . 1, Sep. 1, total 486 (down 171). COMMERCIAL BILLS Mth Open H/L Last Vol Feb. 7555 590/555 590 68 Mar. 7575 582/550 578 99 Apr. 7675 685/675 680 15 Jun. 7880 880/880 880 5 Contracts traded: 187 Open positions at January 29: Feb. 371, Mar. 1054, Apr. : 257, Jun. 115, Sep. 72, Dec. 17, total 1886 (up 43). WOOL FUTURES Mth Open H/L Last Vol May 507 507/507 507 3 Aug. 521 522/521 522 2 OcL 522 522/522 522 Dec. 522 523/522 523 1 4 Mar. 527 527/527 527 2 May 533 533/533 533 2 Contracts traded: 14 Open positions at Jan. 29: Jan. 11, Mar. 191, May 377, Aug. 204, Oct 224, Dec. 236, Jan. 217, Mar. 308, May 194, total 1962 (up 9).
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Press, 31 January 1986, Page 11
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357FUTURES Wheat contract? Press, 31 January 1986, Page 11
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