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Matif says no date

yet for wheat futures launch

PARIS: French futures exchange Matif SA said it hoped to launch its milling wheat contract soon now that France's parliament adopted on first reading a legal passage lifting obstacles to the plan, but it had no startup date yet.

"We would like to launch the contract as soon as possible this year but at this stage we have no (launch) date," a Matif spokeswoman told Reuters.

Asked about market talk the contract might be launched around May 15-17, she said "I am not confirming (that)."

The lower house of the French parliament approved on April 17 on first reading Article 26 of a wider financial bill removing a ban on exchange-based wheat quotations introduced 60 years ago to prevent speculation.

The Senate had already approved the move on first reading.

"We are relieved the two houses approved that key issue," the spokeswoman said.

But the legislative process was not yet over, she said.

The bill was due to return for a second reading to the Senate on May 2 and to the National Assembly by end May.

Within the grain industry millers and feed compounders support a contract that provides cover against volatile price movements but producers and storage organisations see the introduction of U.S. style futures as a threat to the existing system of European Union subsidies.

Amsterdam's Agricultural Futures Exchange (ATA) also plans to launch a wheat contract soon.-Reuter