• Exchanges Aim for Northern Exposure
Mark Peters and Paul Vieira, Wall Street Journal Farmers under the old system could only sell their wheat to the Canadian Wheat Board. Now, under new legislation that went into effect on Dec. 16, they can sell wheat to the market like farmers in the U.S. and will want to use futures contracts to lock in returns and hedge exposure to grain prices. Farmers also will be able to sell to the wheat board. Days before the law took effect, farmer Jim Pallister drove seven hours from his 14,000-acre farm in Manitoba to Saskatoon, Saskatchewan, to hear ICE executive Brad Vannan and several economists discuss the new market. Frustrated over the monopoly and inspired by the novelist and philosopher Ayn Rand, Mr. Pallister stopped growing wheat three years ago. He now may add it back into his crop, preferring the futures contract ICE will launch next month.