The Kansas City Board of Trade trading volume for the month of August amounted to 438,250 contracts in the hard red winter wheat futures contract, which is the third-largest trading volume for the month of August, behind 565,463 contracts in 2007 and 559,282 contracts in 2006.
Wheat futures volume increased 46.1 percent compared to last month. Wheat options volume increased 30.6 percent during the same time period. Total exchange volume posted a gain of 45.7 percent compared to last month.
Today is the first day that new settlement procedures go into effect for the hard red winter wheat futures contract. Settlements on all but the lead contract month are now based on spread relationships. The settlement price of the lead contract month (defined as the contract month with the largest open interest) shall be determined by the weighted average method of the trades in the closing period in accordance with KCBT rules.
The remaining contract months shall be settled based on spread price relationships, considering spread trades reported during the close. If individual spreads trade at multiple prices during the close, the weighted average of spread prices will be used in determining the settlement. The lead contract month settlement price shall serve as the initial spread relationship basis point for adjacent contract months, whose settlement can then be used in chronology to determine deferred month settlements. The changes were granted approval by the Commodity Futures Trading Commission on Aug. 29. Detailed information can be found at: Rule Book Chapter 20
The Kansas City Board of Trade, founded in 1856, is the world's largest futures market for hard red winter wheat. Daily quotes, market commentary, historical data and charting services are available on our website at www.kcbt.com.
(in contracts)
