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East Central Illinois | As the CFTC deliberates expanded daily trading limits in corn and soybeans, they should note Monday's trade volume totals in Kansas City.
The Kansas City Board of Trade said it set a new single-day volume record for HRW wheat futures Monday, when the daily trading limit increased to 60 cents.
Total HRW wheat futures volume, both open auction and electronic trade was just short of 48,000 contracts, the exchange said; about 22,400 contracts traded electronically.
"The five previous sessions were limit up each day at 30 cents, resulting in the inability of some market users to transact business," the exchange said. "With the price limit at 60 cents, trading activity greatly increased, allowing price discovery to work properly."
It will be interesting to see if Monday's volume was a spike (as the exchange statement seems to imply), or if the wider limits act as an invitation to further noncommercial (speculative) trade -- something that opponents to expanded limits for corn and soybeans have feared
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Oh Boy...Look whats up now
