A new all-time monthly volume record was also set for wheat futures as a total of 430,409 contracts were traded in August. This tally breaks the previous record of 346,726 set this June by a staggering 24.1 percent. August trading volume posted gains of 51.8 percent compared to last August and 73 percent compared to last month.
"Volatile prices were a key factor in the record-breaking trading in the Kansas City market for the month of August in accordance with weather problems in the U.S. corn belt and speculative positioning amidst uncertain crop conditions," said Greg O’Brien, KCBT Chairman. " Favorable weekly wheat export sales reports and the August 12 USDA supply and demand reports were contributing factors in the changing marketplace. Strong technical signals prompted hedge funds to further their investments in Kansas City wheat futures and serve as major contributors to consecutive sessions of large trading volume."
Wheat futures spent the month of August setting progressive open interest records, peaking at 98,939 contracts on August 24 before falling slightly due to the September wheat options contract expiration on August 24. Before this spate of new records, the previous all-time open interest record was 91,261 contracts set on June 21, 2001. At the end of this month, open interest was at 94,872 contracts.
Wheat options volume also picked up in the past month. A total of 24,218 contracts traded, an increase of 19.8 percent compared to last August and an increase of 37.8 percent compared to this month a year ago.
Year-to-date wheat futures trading volume is ahead of last year at this time by 17.2 percent, gaining 5.7 percent in the past month alone. Total exchange volume also made a large gain, now 13.8 percent ahead of a year ago at this time. At the end of last month, this gain was at 8 percent.
(in contracts)
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