Kansas City Board Of Trade: October Trading Volume Breaks All Previous October Records

During the month of October more contracts were traded at the Kansas City Board of Trade than in any previous October. The increase in activity was generated by sharp jumps in Hard Red Winter Wheat futures and options volume. In October, 250,300 contracts were traded, compared to 196,037 contracts traded in October 1998, a 27.7 percent increase.

Wheat options volume traded in October was 28,294 contracts, which was a new monthly record. The previous calendar-month record of 26,571 contracts was set in June, 2000. This amounts to a 6.5 percent increase. Wheat futures volume set a new record for October as 220,525 contracts were traded, compared to 196,037 contracts in 1998, a 12.5 percent increase.

Grave concerns about crop quality early in the month led to major market activity. Dryness in hard red winter wheat areas led to planting concerns, generating market interest. When precipitation finally did appear, more trading ensued. Wheat options activity continued to benefit from a larger local trading base, which has injected more capital and liquidity into the market, making the contract more feasible for futures commission merchants.