Kansas City Board Of Trade Year-To-Date Volume Ahead Of 2003 By 20.8 Percent

Kansas City Board of Trade volume traded in June was active, with the exchange continuing to post large year-to-date gains compared to both 2002 and 2003. The brisk pace keeps the KCBT on the path to set a new annual record in 2004.

Total exchange volume of 323,267 contracts was an increase of 7.2 percent compared to last June and an increase of 37.6 percent compared to last month. Year-to-date, the exchange is ahead of 2003 by 20.8 percent and 2002 by 19.2 percent.

The KCBT wheat futures volume amounted to 295,634 contracts, a 13 percent increase compared to June 2003 and a 38.7 percent increase compared to last month. The healthy volume allowed the wheat futures contract to post a 30.6 percent gain compared to 2003’s yearto- date volume and a 27.7 percent gain compared to 2002’s year-to-date figure.

Wheat futures open interest swelled in June, posting a gain of 12.7 percent compared to the end of June 2003 and 4.7 percent compared to the end of last month. Wheat options saw a surge of activity compared to May, with 27,418 contracts traded, an increase of 26.3 percent.

KCBT traders attributed the heavy volume levels to the funds maintaining a good level of long positions in Kansas City and active inter-market spread trading between Kansas City and Chicago, buying Kansas City and selling Chicago. The inter-market spreading was in anticipation of problems with the hard red winter wheat crop, in terms of size and rain delays. Market volatility also played a part in active trading, traders added.

The Kansas City Board of Trade, chartered in 1876, is the world's largest futures market for hard red winter wheat.