KCBT Posts Increases In Volume For Month Of January

January was a tremendous month for futures and options trading at he Kansas City Board of Trade, with wheat futures trading a single day record for any given month f January and wheat options trading a new record for the entire month of January. Total exchange volume noticed a 17.8% increase at 203,337 contracts this month from the January 2000 volume of 72,670 contracts, and a 30.4% increase from last month's volume of 155,887 contracts. Value ine® also experienced a 61.2% increase in open interest from December 2000 open interest, and a 2.6% increase from January 2000 open interest.

Wheat futures traded 20,409 contracts, the equivalent of 102.045 million bushels on Monday, January 29. This exceeded the existing record that had been set just recently on January 11 at 16,753 contracts. The previous record of 15,017 contracts or 75.085 million bushels was set on January 13, 1999. Wheat futures were active due to fluctuation in the market on account of decreases in winter wheat seedings data and uncertainty of the 2001 crop condition. Wheat options volume traded in January was 19,038 contracts, which was a new record for the month of January. The previous record of 12,652 contracts was set in 2000. Wheat options also noticed a 75.3% increase in volume from the December 2000 total volume of 10,862 contracts.

Wheat options activity was prevalent due to the nervousness of market direction increasing the necessity of customers to protect their positions through the use of options.