Grain Futures Update - February 2009

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Welcome to the latest edition of the Grain Futures Update. ASX sends this newsletter each month to keep you informed about news and events that may be of interest to you.

12 million tonnes and growing (PDF 123KB) The ASX Grain Futures market continues to develop as Australia's market for grain price discovery and risk transfer. Since inception, in excess of 12 million tonnes (t) of Australian grain and oilseed have traded on ASX and more than 900,000t have been delivered. With the marketing arrangements for export wheat liberalised and a number of competing exporters now accredited with Wheat Exports Australia (WEA), the stage is set for substantial growth and improved liquidity. More information on market performance (PDF 123KB).

Western Australia wheat futures and options (PDF 92KB) ASX is working on a new deliverable wheat futures contract that will better serve the risk management needs of growers and members of the international trade interested in the pricing of export wheat. It is envisaged that the new contract specification will be finalised and submitted to the Australian Securities and Investments Commission (ASIC) for consideration within the next couple of months. Once ASX has received formal ASIC approval and a listing date is agreed, the market will be notified as soon as possible. More information on Western Australia wheat futures (PDF 92KB).

A genuine marketing alternative for grain growers Much has been written and said in the last couple of months about growers' marketing alternatives in this, the first season of liberalised wheat exports in the 21st century. The ASX Grain Futures market provides growers with the dual benefits of price transparency as well as the opportunity to transfer price risk. The ASX Grain Futures market can be used by growers year round and can be applied up to three seasons in advance, before sowing, before harvest or post harvest. Growers in delivery zones for ASX contracts can deliver against ASX positions. More information on the benefits available for growers.

Charts now available Charting ASX Grain Futures contracts is now possible on the ASX website. The static historical charts for new crop contract months will still be supplied and updated on a monthly basis. More information on charts.

Open interest (PDF 108KB) Participants are reminded that the open interest numbers generated on both ASX and SFE can contain "back to back" account positions. More information on open interest (PDF 108KB).

Grower levy obligations Grower deliveries against ASX Grain Futures contracts is possible. For those interested to explore this alternative, the payment of grower levies needs to be facilitated by the grower's broker. More information on grower levy obligations.

Education workshops ASX will be running education workshops on grain futures and options in the first half of 2009. The previous course run by ASX is being updated and fine-tuned in accordance with standards expected under the Australian Quality Training Framework. Although a timetable of events is yet to be finalised, workshops will definitely be held in capital cities. To avoid disappointment, anyone interested in attending a full day workshop is encouraged to contact ASX.

Find a broker There are a number of brokers now servicing the ASX Grain Futures market. If you are interested to know more about how you can become involved, view the broker contact list. If the world of derivatives and hedging is new to you, you may find the services of a risk management adviser particularly useful. View the contact list of ASIC licensed risk management advisers.

NOTICE © 2009 ASX Limited, 20 Bridge Street, Sydney NSW 2000, Australia. Ph. 131 279. All Rights Reserved. ASX Limited believes that all information contained herein is accurate and reliable. However no warranty of accuracy or reliability as to such information is given and no responsibility for loss arising in any way from or in connection with errors or omissions in any information (including responsibility to any person by reason of negligence) is accepted by ASX Limited, its subsidiaries or their employees. The information contained in this email should in no way be construed to constitute financial advice or a recommendation by ASX Limited with respect to the purchase or sale of any securities. Independent professional advice should be sought before making any investment decision.