Friday's official wheat options volume was 3,460 contracts, which shattered the previous single-day record of 2,517 contracts set on August 20, 1998.
Traders said interest in KCBT wheat options from futures commission merchants has been growing, contributing to Friday's record and to increased activity in the contract as a whole.
"It's exciting to see the industry increasingly taking advantage of all that options have to offer," said Michael Braude, KCBT president. "Their flexibility makes them an excellent marketing tool."
Last month KCBT wheat options posted record open interest, peaking at 26,590 contracts on April 14. Open interest measures the number of open trading positions in a market.
Volume in KCBT wheat options set a new annual record in 1999 for the third year in a row.
Options give a buyer the right, but not the obligation, to buy or sell a KCBT wheat futures contract at a specified price. KCBT wheat options have been trading since 1984. The underlying futures contract for KCBT wheat options represents 5,000 bushels of hard red winter wheat.
