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Back to the futures: An assessment of market performance on the early Winnipeg Grain Exchange

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  • Joseph M. Santos

Abstract

In this paper, I offer a quantitatively rich, historical perspective with which to consider Western Canada's recent return to private grain marketing. I assess how futures markets on the Winnipeg Grain Exchange (WGE) performed before the Canadian Wheat Board, and I consider the extent to which this performance contributed to the Canadian government's decision to create the Board. I conclude, despite significant agrarian dissatisfaction with private grain marketing on the WGE, the Canadian government ultimately proscribed futures trading because it was incompatible with the CWB model, which the Canadian government needed in order to stabilize farm incomes, particularly in the aftermath of the Great Depression. Retour aux contrats à terme : une évaluation de la performance du marché au temps du Winnipeg Grain Exchange. L'auteur offre une perspective historique qui s'appuie sur de riches données quantitatives qu'il utilise pour évaluer le récent retour de la mise en marché privée dans l'Ouest canadien. Il évalue la performance des marchés à terme sur le Winnipeg Grain Exchange (WGE) avant l'arrivée de la Commission canadienne du blé (CWB), et jusqu'à quel point cette performance a contribué à la décision du gouvernement du Canada de mettre sur pied la CWB. Il conclut que malgré le mécontentement significatif du monde agricole quant à la mise en marché privée sur le WGE, le gouvernement du Canada mit fin à ses pratiques parce que celles‐ci étaient incompatibles avec le modèle de la CWB dont le Canada avait besoin pour stabiliser les revenus des fermiers, surtout dans la période qui a suivi la Grande Crise.

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  • Joseph M. Santos, 2014. "Back to the futures: An assessment of market performance on the early Winnipeg Grain Exchange," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 47(4), pages 1426-1448, November.
  • Handle: RePEc:wly:canjec:v:47:y:2014:i:4:p:1426-1448
    DOI: 10.1111/caje.12107
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