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East Central Illinois | So Much for Acting Together
Limits go to 90 cents for MGE and KCBT wheat for the Wednesday session, but Chicago stays at 60 cents.
As DTN Commodity Analyst Elaine Kub said, "Wow. Talk about technicalities."
Per an arrangement announced by the three exchanges at the close of trade Friday, daily limits on wheat futures expand to 90 cents if 2 contracts in the same crop year close at the 60-cent limit.
Looking at today's futures composites, one would expect to see a 90-cent range at all three exchanges. July/Sep/Dec were all limit down in Minneapolis, July/Dec were limit down in KC, and at first glance, Dec 08/Mar 09 CBT wheat were also limit down.
But, as it turns out, there was a "last second" offer above the limit on one of those contracts, according to CME Group spokesperson Mary Haffenberg. But no one put out a bid on the other side, she told me. So, technically, there was a "last" price above the limit, but that wasn't the closing price. If you've stayed with me this far, I think you'll agree with Elaine's "Wow."
The next Wow may be in how the markets handle these different limits in this session coming up in a few hours.
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Wheat limits for Wednesday
