REFILE-UPDATE 2-Wheat leads rise in NYSE Liffe commodity volumes

(Refiles to clarify NYSE Liffe’s milling wheat contract is
Paris-based.)

* Milling wheat now Liffe’s most active commodity market

* Cocoa, robusta coffee futures volume also rise in 2010

* White sugar futures volume flat, options turnover falls

(Adds exchange quotes, details, byline)

By Nigel Hunt

LONDON, Jan 7 (BestGrowthStock) – Trading volume in commodity
products on NYSE Liffe (NYX.N: ) rose sharply in 2010 with a
drought in Russia helping to more than double turnover in its
milling wheat futures contract, the exchange said on Friday.

“Our strongest performing contract (in 2010) was milling
wheat futures which saw growth of 125 percent following price
volatility caused by drought in Russia and eastern Europe last
summer,” Ian Dudden, Directer, Commodity Derivatives, at NYSE
Liffe said.

The exchange said the average daily volume, including all
its commodity futures and options, rose by 36.3 percent in 2010
to 65,000 contracts versus prior year levels.

Russia suffered its worst drought in more than a century
last summer and banned grain exports, leading to a surge in
prices in global wheat markets including NYSE’s Paris-based
milling wheat contract (0#BL2:: ).

Total volume in milling wheat futures (0#BL2:: ) rose to 4.37
million contracts in 2010 to make it the most actively traded
commodity market on the exchange.

Volumes in most other commodity futures and options markets,
including London-based cocoa (0#LCC:: ) and robusta coffee
(0#LRC:: ) as well as Paris-based rapeseed (0#COM:: ).

“Strong gains were seen across a broad range of products,
both in futures as well as options,” Dudden said.

INVESTOR ACTIVITY RISES

“Growth has been powered by investors who continue to
increase their activity in commodities as an alternative to more
traditional investments, as well as by the growing appreciation
of the role that derivatives can play in managing price risk for
producers, manufacturers and other intermediaries.”

Traders also cited increased investor interest.

“Record volumes are the consequence of our profession
becoming more and more financial,” a French trader said.
“Speculation came back massively, which means more quantities
traded on the futures market.”

Trading in cocoa futures, the most active market in 2009,
rose 9 percent to 3.52 million contracts, while robusta coffee
futures turnover climbed 11 percent to 2.79 million.

The white sugar futures volume (0#LSU:: ) was flat at 1.85
million contracts while rapeseed futures saw a 48 percent
increase to 1.20 million.

Volumes in all major commodity options increased, with the
exception of white sugar.

Milling wheat options saw a 55 percent jump to 1.02 million
contracts, cocoa options rose 31 percent to 730,027, robusta
coffee options soared 151 percent to 482,483 and rapeseed
options surged 243 percent to 271,993.

White sugar options volume fell 55 percent to 22,482.
(Additional reporting by Sybille de La Hamaide in Paris;
Editing by Alison Birrane)