Liffe is keen to launch a barley future – probably on higher grade malt barley – if growers and buyers can settle their disagreement on the terms.
French farming cooperatives want more leeway for the lower grades of barley, used for feeding animals, which make up the bulk of prodution. But maltsters who use barley for making beer, whisky and malted drinks are eager for futures to be introduced, and want them to reference higher grade malt barley.
France has an important voice in the negotiations, as it is a large grower of barley, producing 7% of the world’s crop in 2007, according to the UN Food and Agriculture Organisation. The UK produces somewhat less, but is a net exporter, trading about 20% of...