Traders at the KCBT attributed the increase in wheat futures open interest to large wheat crops which led to heavy carryover and increased hedging, and dryness in hard red winter wheat areas, which is delaying planting and causing crop concerns, creating speculative interest. In the past week the price of a KCBT December 2000 wheat futures contract increased 24 1/2 cents.
Wheat options volume for the month of September was 17,073 contracts, the most ever traded during a September. The previous September record of 8,708 contracts was set in 1998. Earlier in the month wheat options trading volume set a new annual record. Year-to-date trade has amounted to 152,462 contracts compared to 143,974 contracts in 1999. This represents a 6 percent increase with three months left to add to the record. The increase in wheat options open interest is the result of a larger local trading base, which has injected more capital and liquidity into the market, making the contract more feasible for futures commission merchants.
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