CHICAGO, KANSAS CITY, Mo., and MINNEAPOLIS, Feb. 8 /PRNewswire-FirstCall/ -- CME Group, the Kansas City Board of Trade and the Minneapolis Grain Exchange announced today that all three exchanges will implement new price limits for Wheat futures and mini-sized Wheat futures on Sunday, February 10 for trade date Monday, February 11.
Price limits will be set at $0.60 per bushel above or below the previous day's settlement price. Should two or more wheat futures contract months within a crop year (or the remaining contract month in a crop year) close at limit bid or limit offer, the daily price limits for all contract months on the respective exchange shall increase by 50 percent the next business day and an additional 50 percent each subsequent day two or more contract months within a crop year (or the remaining contract month in a crop year) close at limit bid or limit offer. Daily price limits shall revert back to $0.60 after no wheat futures contract month closes limit bid or limit offer for three consecutive business days. There shall be no price limits on the current month contract on or after the second business day preceding the first day of the delivery month, except in Minneapolis where there are no price limits in the spot month on the first business day following options expiration.
The joint expansion of price limits is considered necessary due to the unprecedented price levels and volatility in recent market sessions and over the past year. Wheat futures on all three exchanges have closed at a limit move for successive sessions, and expanded limits will allow Wheat contracts to continue performing their price discovery and risk mitigation functions without being unduly constrained by limit price moves.
By acting in unison, the exchanges will help customers avoid additional risk resulting from distorted inter-market spread relationships that exist among the wheat markets when price limits are not consistent.
About CME Group
CME Group (http://www.cmegroup.com/) is the world's largest and most diverse exchange. Formed by the 2007 merger of the Chicago Mercantile Exchange (CME) and the Chicago Board of Trade (CBOT), CME Group serves the risk management needs of customers around the globe. As an international marketplace, CME Group brings buyers and sellers together on the CME Globex electronic trading platform and on its trading floors. CME Group offers the widest range of benchmark products available across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, agricultural commodities, and alternative investment products such as weather and real estate. CME Group is traded on the New York Stock Exchange and NASDAQ under the symbol "CME." The Globe logo, CME, Chicago Mercantile Exchange, CME Group, Globex and E-mini, are trademarks of Chicago Mercantile Exchange Inc. CBOT and Chicago Board of Trade are trademarks of the Board of Trade of the City of Chicago. These trademarks are used herein under license. All other trademarks are the property of their respective owners. Further information about CME Group and its products can be found at http://www.cmegroup.com/.
About the Kansas City Board of Trade
The Kansas City Board of Trade, founded in 1856, is the world's largest futures market for hard red winter wheat. For more information, visit our website at http://www.kcbt.com/.
About Minneapolis Grain Exchange
MGEX, established in 1881, is the only market for Hard Red Spring Wheat, National Corn Index (NCI), National Soybean Index (NSI), Hard Red Winter Wheat Index (HRWI), Hard Red Spring Wheat Index (HRSI) and Soft Red Winter Wheat Index (SRWI) futures and options. To learn more about the MGEX visit our website at http://www.mgex.com/.
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