KCBT Wheat Futures Set New Annual Trading Volume Record

The Kansas City Board of Trade has set a new annual trading volume record in the hard red winter wheat futures contract. At the conclusion of yesterday's trade, 2,438,108 contracts or 12.19 billion bushels had traded thus far in 2002. The previous record was set in 2000, at 2,427,950 contracts or 12.14 billion bushels. Approximately a month and a half remains to add to the record for this year.

This is the third annual volume record the KCBT has set this year. On October 21, the exchange set a new all-exchange record. Year-to-date volume is now 2,940,645 contracts compared to the 2000 record of 2,664,669 contracts. By the end of this month, more than 3 million contracts will have changed hands at the KCBT in 2002.

KCBT wheat options trading set a new annual volume record in July. To date, 487,226 contracts have traded, more than double last year's record of 243,311 contracts. This is the sixth year in a row that wheat options have set an annual record.

"We have seen a dramatic change in the underlying supply and demand picture for hard wheat in recent months," said KCBT President Robert Petersen. "As available supplies have become tighter, prices have become more volatile, which has increased the need for the price protection tools offered by the Kansas City Board of Trade."

The Kansas City Board of Trade, chartered in 1876, is the world's largest futures market for hard red winter wheat. Options give a buyer the right, but not the obligation, to buy or sell a KCBT wheat futures contract at a specified price.