The Kansas City Board of Trade’s Board of Directors approved increasing the daily price limit for the hard red winter wheat futures and options contracts from 30 cents to 40 cents at a special meeting held today. The proposed rule amendment was filed with the Commodity Futures Trading Commission (CFTC) today. In coordination with other wheat markets, it is the intent of the KCBT to have this rule change effective business date Tuesday, February 12, 2008 (the evening session on Monday, February 11, 2008) subject to CFTC approval.
The daily price limit increase was considered necessary due to the unprecedented price levels and volatility during the past year. During 2008, KCBT wheat futures have closed at a limit move on eleven (11) days, which has restricted price discovery. The price of the commodity has more than doubled during the past year. The KCBT feels that a larger price limit is necessary for the long-term health of our contract. The proposed price increase is being made in coordination with the other wheat markets to not distort the inter-market spread relationships that exist among the wheat markets.
The Kansas City Board of Trade, founded in 1856, is the world's largest futures market for hard red winter wheat. Daily quotes, market commentary, historical data and charting services are available on our website at www.kcbt.com.
