Winnipeg commodity exchange ICE Futures Canada has moved to try and encourage open interest in its milling wheat contract through a new protein premium option.

As of Tuesday (Aug. 14), the contract deliverable grades for ICE's milling wheat (WA) contract now include an option to deliver No. 1 or No. 2 Canada Western red spring (CWRS) with a minimum protein of 13.5 per cent at a premium of $5 per net tonne.

The change followed a meeting of the Winnipeg exchange's board of directors and "consultation with market participants," ICE said Tuesday.

The company on Tuesday also announced the removal of the option to deliver No. 1 or No. 2 CWRS with a minimum protein of 12.5 per cent.

Therefore, ICE said, CWRS wheat must have a minimum protein content of 13 per cent -- on a 13.5 per cent moisture basis -- to be deliverable against the WA futures contract.

That's on top of meeting "all other grade requirements listed in (ICE) rules" for milling wheat, such as maximum vomitoxin of two parts per million and maximum dockage of one per cent.

The WA contract prices physical delivery of CWRS wheat free-on-board at elevators in the par area of eastern Saskatchewan.

ICE launched new milling wheat, durum (DW) and barley (BW) contracts in January following the federal government's passage of Bill C-18, which on Aug. 1 ended the former Canadian Wheat Board's single marketing desk for Prairie wheat and barley.

The exchange last week delisted its little-used pre-C-18 western barley (AB) contract, which had seen no trade activity since April 23.

Related stories:
Winnipeg's ICE folds old western barley contract, Aug. 9, 2012
ICE's grain futures waiting on cash market, June 6, 2012