While open interest increased, volume dropped slightly during March due to a "wait and see" attitude regarding new positions. There was continuing uncertainty about the condition of the hard red winter wheat crop. Also, the first part of the month brought uncertainty as to the geopolitical situation and then the onset of the second gulf war was seen later in the month.
Wheat options year-to-date volume, however, remains ahead of this time last year, by 8.3 percent. Overall exchange volume remains very near this point last year, with wheat futures only off by 1.2 percent.
The Kansas City Board of Trade, chartered in 1876, is the world's largest futures market for hard red winter wheat.