Kansas City Wheat Futures

QUOTE AND NEWS
Agrimoney.com  Jun 17  Comment 
El Nino means that US growers of the protein wheat will, after two years of drought, likely see strong rains next planting period, the FAO says
Agriculture Online  Apr 30  Comment 
The Hard Red Winter wheat crop in parts of Kansas is in the worst shape it's been in 10 years, according to the Kansas Wheat Tour underway this week.
Agrimoney.com  Apr 9  Comment 
It is not just hard red winter wheat crops which have been hurt by the savage US winter, but benchmark soft red winter wheat and white winter too
Agrimoney.com  Feb 4  Comment 
US officials cut their ratings of the condition of hard red winter wheat crops in major growing states, where drought has spread again
Mondo Visione  Jul 30  Comment 
CME Group , the world's leading and most diverse derivatives marketplace, today announced the launch of Short-Dated New Crop Options on KC Hard Red Winter (HRW) Wheat futures. Pending CFTC review, these new short-dated options will be available...
Mondo Visione  Jun 4  Comment 
CME Group, the world's leading and most diverse derivatives marketplace, today announced it has expanded its agricultural options offering through the introduction of three new options on the recently-acquired KCBT hard red winter (HRW) Wheat...
Agrimoney.com  May 1  Comment 
ANZ says prices of drought-hit hard red winter should outperform those of Chicago-traded soft red winter wheat, which looks "overvalued"
Agrimoney.com  Apr 30  Comment 
It is soft red winter wheat, as traded in Chicago, in which supplies look like getting tight, not frost-hit hard red winter wheat, Macquarie says




 

This article is about a specific futures contract. For wheat prices in general, see the article on Wheat Prices.

Kansas City Wheat Futures (alternately referred to as "KC Wheat," "KCBT Wheat," "Hard Red Winter Wheat," and "HRW Wheat") are traded on the Kansas City Board of Trade (KCBT) under ticker symbol KW in cents per bushel.[1] For electronic trading sessions, the symbol KE is used[2]

The chart to the left shows Front Month Kansas City Wheat Futures prices on the Kansas City Board of Trade (KCBT) in cents per bushels.


Delivery Dates

Kansas City Wheat futures contracts are delivered every year in March, May, July, September, and December.[3]

The following is a table with Kansas City Wheat futures delivery dates and resultant tickers for 2009. For an explanation on commodity tickers see commodity ticker construction.

Delivery Month Full Ticker Symbol Thomson-Reuters Symbol
March, 2009KWH9KW/H9-KC
May, 2009KWK9KW/K9-KC
July, 2009KWN9KW/N9-KC
September, 2009KWU9KW/U9-KC
DecemberKWZ9KW/Z9-KC

Contract Specifications

Contract Size

One hard red winter wheat futures contract on the Kansas City Board of Trade (KCBT) is 5,000 bushels.[3]

Daily Price Limit

The daily price limit for hard red wheat futures contracts on the Kansas City Board of Trade (KCBT) is $.60 per bushel ($1500 per contract) above or below the previous day's settlement price.[3] However, this limit increases fifty percent in the following trading session if the price of two or more futures contracts with delivery months in the first five listed non-spot contract months, or the the final contract month of a crop year, closes at the price limit.[3] Price limits can expand only two consecutive times (e.g. from $.60 per bushel to $.90 per bushel, and then from $.90 per bushel to $1.35 per bushel). If the price limit has been raised to either of the higher limits and no futures contract month closes at the limit, in the following trading session the limit will revert back to the previous price limit.[3] A contract has no price limits whatsoever during its spot month.[3]

Last Trading Day

Trading of kansas city wheat futures contracts on the Kansas City Board of Trade (KCBT) ends on the business day prior to the fifteenth calendar day of the contract month.[3]

Deliverable Grades

Deliverable wheat grades for futures contracts on the Kansas City Board of Trade (KCBT) at are: No. 2 Hard Red Winter Wheat (at par), and No. 1 Hard Red Winter Wheat (at a 1.5 cent premium to the contract price), and No. 3 Hard Red Winter Wheat (at a 5 cent discount to the contract price).[3] As of July 2008, No. 3 Hard Red Winter Wheat is no longer accepted unless the receipt holder agrees to pay for an upgrade to No. 2 Hard Red Winter Wheat.

CBOT Wheat vs. KCBT Wheat

Both wheat futures traded on Chicago Board of Trade (CBOT) and the Kansas City Board of Trade (KCBT) are used as benchmarks for wheat prices in general. However, generally speaking, the term "wheat futures" refers to wheat futures traded on the CBOT while wheat futures traded on the KCBT are specified to be "KCBT Wheat," "KC Wheat," or "Kansas City Wheat".

See Also

References

  1. Kansas City Board of Trade Wheat Futures Contract Specifications
  2. Price Quotes for outcry and electronic KCBT wheat
  3. 3.0 3.1 3.2 3.3 3.4 3.5 3.6 3.7
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