KCBT Wheat Futures Open Interest Exceeds 90,000 Contracts

Kansas CityæOctober 16, 2000æFor the first time, Kansas City Board of Trade wheat futures open interest has exceeded 90,000 contracts. At the conclusion of trade on Friday, Oct.13, open interest in KCBT wheat futures stood at 90,013 contracts, which is representative of 450.165 million bushels of wheat.

On Friday, Sept. 29, a new open interest record of 85,713 contracts was set, breaking the previous record of 85,341 contracts set on July 30, 1999. Since then the open interest has been creeping up, setting new records.

. Traders at the KCBT attributed the increase in wheat futures open interest to large wheat crops which led to heavy carryover and increased hedging, and dryness in hard red winter wheat areas, which is delaying planting and causing crop concerns, creating speculative interest. As time progresses, the dry weather is intensifying market interest.

Open interest measures the number of open trading positions in a market. Each KCBT wheat futures contract represents 5,000 bushels of wheat.