KCBT Wheat Futures Trading Volume Sets New Annual Record

For the ninth time in 11 years, 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 Friday’s trade 2,747,157 contracts or 13.735 billion bushels had traded thus far in 2004. The previous record was set in 2002, at 2,738,536 contracts or 13.692 billion bushels. Approximately two weeks remain to add to the record for this year.

"There have been several factors in 2004 that led to record-setting trading volume in the KCBT hard red winter futures contract," said Scott Smith, KCBT Chairman. "First, the hard red winter wheat futures market has seen increased volatility and price risk due to late-season wet weather that reduced both quantity and quality of the HRW crop. Secondly, the KCBT continued to see growth in volume from both commodity funds and proprietary trading firms. And lastly, as in past years, the KCBT enjoys a deep liquidity pool from a strong local trader population and active commercial user participation."

"The marketplace has been showing confidence in the Kansas City Board of Trade as membership values have soared in the past 18 months, with an "A" or full membership trading for a record amount of $129,000 on November 8," said Smith. "And, we are looking for continued growth in volume as we embark on electronic trading for Value Line® futures and options and overnight trading in the hard red winter wheat futures and options."