Record Open Interest Reached In KCBT Wheat Options

Open interest in Kansas City Board of Trade wheat options has reached a record level, pushed upward by large volume and increased interest in the market from futures commission merchants.

At the conclusion of trade on Friday, open interest in KCBT wheat options stood at 26,590 contracts, breaking the previous record of 26,382 contracts set on November 10, 1998. Traders said interest in KCBT wheat options from futures commission merchants has been growing, contributing to the record.

"Wheat options can be an excellent risk management tool for producers and for users," said Michael Braude, KCBT president. "We are pleased to see the industry increasingly take advantage of the opportunities that options have to offer."

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.