West Australia to start wheat export futures

Wheat export futures will begin trading on ASX Ltd's exchange in Australia next week in a move designed to give a benchmark price for shipments from the world's fourth-largest supplier.

The Western Australia Wheat futures will start trade on September 14, with options available for trade from September 15, ASX said.

The contract unit is 20 tonnes, priced at Kwinana, West Australia. The first contract maturity to be listed will be January 2010.

Since the liberalisation of Australian wheat exports from July 2008, all participants within the wheat supply chain have sought an improved method to facilitate price discovery and manage price risk, said ASX, which also operates the nation's biggest stock exchange.

The West Australian contract will be the first export- focused futures offered by ASX, adding to its domestic-focused contract for grain delivered in New South Wales state.

ASX in May had deferred the start of the West Australian contract until the completion of legal agreements.