High volatility in the Minneapolis Grain Exchange (MGEX or Exchange) Spring Wheat Futures market produced record volume on Friday, when the Exchange set a new all-time high daily electronic volume record with 5,373 contracts trading. The previous daily electronic record was 5,260 contracts set on Nov. 28, 2007.
In addition, the total daily volume of 14,295 contracts exceeded the previous record total daily volume for January, which was 14,108 contracts set on Jan. 19, 2005. Wheat prices have also set new all-time highs with the March ’08 contact closing at $11.94 ¾, the highest price ever for hard red spring wheat futures.
“We are seeing unprecedented prices and volatility in the marketplace,” says Mark G. Bagan, President and CEO of the Exchange. “While we’re in uncharted territories for our traditional market participants, the volatility is bringing new players to the market, which translates into new opportunities for all. There is increasing interest in the commodity markets from other investors.”
The high volatility in the futures market is also driving volume in the options market. The MGEX is within striking distance of the previous January options volume record of 4,596 contracts set in 1994. As of Friday, 4,236 options contracts have traded. That’s just 360 contracts shy of the previous record and just slightly above the average daily options volume of 326 contracts so far this month.
Additional information and daily updates on volume and pricing are available on the MGEX website at www.mgex.com. The MGEX also posts commentary from a variety of brokers and analysts for anyone interested in reading different views on agricultural commodity market. Commentary can be found at www.mgex.com/market_commentary.html.
