Total exchange volume for the month of March amounted to 278,906 contracts, an increase of 86.9 percent over March 2003 volume. This tally represents an increase of 28.3 percent when compared to the previous March record of 217,371 contracts that was set in 1999.
The new exchange record was largely due to a new March record for the wheat futures contract. A total of 253,158 contracts were traded in March, double the total from March 2003 of 126,283 contracts. The new March record represents a 32 percent increase from 1999's record volume of 191,693 contracts.
The wheat options contract also set a new record for the month of March as 25,589 contracts were traded, breaking the 2002 record of 25,288 contracts by 1.2 percent.
Year-to-date volume made large strides this month, with wheat futures volume ahead of 2003 year-to-date volume by 45.9 percent. Total exchange volume is ahead of last year at this time by 36.5 percent. Wheat options volume is lagging behind at this time last year, but has made progress since last month. At the conclusion of February trade, wheat options year-to-date volume was running behind 2003 by 25.5 percent. That figure is now 15.2 percent.
KCBT members attribute the surge in volume to increased volatility in the marketplace in response to tightening world supplies and concerns about the size and condition of the hard red winter wheat crop.
The Kansas City Board of Trade, chartered in 1876, is the world's largest futures market for hard red winter wheat.
