KCBT May Volume & Open Interest - KCBT Year-To-Date Volume Running Ahead By 24.7 Percent

The Kansas City Board of Trade wheat futures contract and total exchange volume continued to post large year-to-date gains compared to volume at this point in 2003.

Total exchange volume through the month of May was ahead of year-to-date volume through May 2003 by 24.7 percent or a total of 262,670 contracts. Wheat futures year-to-date volume was ahead of 2003’s year-to-date tally by 35.8 percent or 316,440 contracts.

Volume fell shy of May 2003 volume due to a variety of factors, according to KCBT members on the trading floor. The dominant factor was uncertainty about the new hard red winter wheat crop and a resulting hesitation to put on positions. Also, the market put in new contract highs in the July and September contracts on April 5 and have been backing off since that time. Additionally, little hedging pressure was seen during the month of May from producers or commercials.

Open interest in the wheat options contract grew 26.2 percent compared to open interest at the end of April 2004.

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