Traders attributed the increase in open interest to a combination of factors which has resulted in increased participation by funds and commercial market participants. The Kansas City market has been experiencing increased depth in the market, increased liquidity and tighter markets. As a result, more people are utilizing Kansas City wheat futures options for hard red winter wheat.
Yesterday's record adds to a single-day trading volume record for KCBT wheat options set on May 9 of this year as 4,322 contracts were traded, which broke the previous single-day record of 3,460 contracts set on May 5, 2000.
Open interest measures the number of open trading positions in a market. The underlying futures contract for KCBT wheat options represents 5,000 bushels of hard red winter wheat.
