Chicago, 14 September 2010

A Kansas City Board of Trade committee recommended the exchange start a storage ratewarehouse payment plan to improve the performance of its wheat contract, the exchange said in a circular on Tuesday.

The proposal, approved by a committee vote of 7-2, needs the approval of the KCBT board of directors and its regulator, the Commodity Futures Trading Commission.

The Kansas City Board of Trade has been under pressure from CFTC the last few months to fix its hard red winter wheat contract which has suffered from a persistent lack of "convergence" between KCBT futures and HRW cash prices since mid-2009.

Ends --

Reuters - for Commodities Now.