The new record represents 757.71 million bushels of wheat compared to the old record of 720.695 million bushels. Last year at this time, open interest was at 83,883 contracts, representing 419.42 million bushels.
"We are seeing increased market participation by all segments, including commercials, producers and funds as the KCBT wheat contract continues to provide excellent liquidity," said Daniel L. Gibson, KCBT Chairman.
Continuing severe drought concerns in the southern hard red winter wheat belt have been providing a boost to pricing and as a result, an increase in price risk management market participation as the crop condition continues to deteriorate. In the most recent USDA report, the Texas crop was reported at 89 percent poor to very poor quality and the Oklahoma crop was reported at 58 percent poor to very poor quality.
Also, hedge fund activity continues to increase at the Kansas City Board of Trade with funds acting as both buyers and sellers in the past week. And, the possibility of increased export activity has been providing for higher prices as it is possible that the United States could be the main source of a recent Iraqi hard red winter wheat tender.
Today marks the fifth straight session that the KCBT has set a new contract high in the March contract, with the market trading up to as high as $4.36. The Kansas City Board of Trade, chartered in 1876, is the world's benchmark for hard red winter wheat prices.
Open interest measures the number of open trading positions in a market. Each KCBT wheat futures contract represents 5,000 bushels of wheat.