MGEX, commonly known as the Minneapolis Grain Exchange, announced last Friday that its ownership has approved eliminating a rule precluding the delivery of genetically modified wheat.
The change will be made effective the March 2012 contract month and covers the exchange’s hard red spring (HRS) contract, its flagship.
The rule that will be removed required a delivery warehouse to deliver upon request non-transgenic wheat. It had been in effect since the July 2004 contract month.
The MGEX Contracts Committee and MGEX Board of Directors unanimously recommended the change be made, though the exchange said in a press release about the change the “vote does not endorse or oppose the use of transgenic wheat varieties”.
The other two major U.S. wheat markets – the Chicago Board of Trade, owned by the CME Group, and the Kansas City Board of Trade – have no similar restrictions.
Members of the wheat chain have urged MGEX to reconsider the provision, and NAWG has specifically recommended in recent correspondence that the restriction be eliminated.