MGEX lifts restriction on deliveries of GMO wheat

CHICAGO, March 5 (Reuters) - The Minneapolis Grain Exchange said on Friday it would lift a rule that requires a delivery warehouse to deliver non-genetically modified wheat against MGEX futures, if requested by the party taking the wheat.

The regional U.S. grain exchange said the rule, in effect since 2004, would be eliminated starting with its March 2012 spring wheat futures contract.

"The commercial marketplace will sort through the issues, should transgenic wheat enter into the supply chain," MGEX President and Chief Executive Mark Bagan said in a statement.

"We want to be very clear that this vote does not endorse or oppose the use of transgenic wheat varieties. Rather, our action is rooted in the best interest of our market participants," Bagan said.

Currently no genetically modified wheat is grown on a commercial scale anywhere in the world due to opposition from consumers and food industry players.

Monsanto Co (MON.N: Quote, Profile, Research), a leading developer of transgenic corn and soybeans, backed off a plan to commercialize a genetically modified, herbicide-tolerant spring wheat in 2004. At the time, the wheat industry feared the new wheat would hurt U.S. export business.

The Minneapolis exchange said its owners voted to eliminate the restriction following the unanimous recommendations of its contracts committee and board of directors. (Reporting by Julie Ingwersen; Editing by Marguerita Choy)




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Source: http://in.reuters.com/article/governmentFilingsNews/idINN0511088720100305