The recent high of $95,000 easily eclipses the previous record of $89,000 set on November 22, 2000. Membership values at an exchange tend to fluctuate, often reflecting trading opportunities.
"The rise in seat prices can be attributed to a variety of factors," said John Crowe, KCBT Chairman. Fundamentally, he said, a seat on the exchange represents a great value for the money. In addition, many in the industry believe the consolidation among market users - commercial grain companies and brokerage companies - has slowed, meaning there are fewer memberships coming available for sale. Crowe also noted that the Board of Trade is the only U.S. exchange that has paid out a dividend for each of the last five years. That dividend has been $2,500.
Underlying all these reasons is a strong demand for the risk management tools traded at the exchange. Last year, the Kansas City Board of Trade set new annual volume records for wheat futures (2,738,536 contracts), wheat options (570,823) and for the exchange as a whole (3,326,836). That marked the sixth year in a row that the wheat options volume set a new annual record. Volume thus far in 2003 is running 9.8 percent ahead of last year in wheat options and is hovering near last year's level in wheat futures and the exchange as a whole.
The KCBT is a for-profit corporation organized under the laws of Delaware. There are 192 Class A memberships or shares of stock in the exchange and 50 "B" or associate memberships.
The Kansas City Board of Trade, chartered in 1876, is the world's largest futures market for hard red winter wheat.
