March 4, 2008

MGE sees 4th-highest total monthly volume amid wheat rally

The Minneapolis Grain Exchange in February recorded its fourth-highest total monthly volume in history as spring wheat futures soared to all-time highs, according to new data from the exchange.

Total MGE volume last month, including spring wheat futures and options, was 190,327 contracts, up from 147,330 contracts in February 2007, the exchange said. The highest monthly volume ever at the exchange was 216,593 contracts in August 2007.

Total spring wheat futures volume was 175,773 contracts, up from 145,315 contracts in February 2007, the exchange said. Open-outcry futures volume was just 105,633 contracts, down from 112,434 contracts a year earlier, according to the MGE.

However, electronic spring wheat futures volume was the second-highest in the exchange's history. Electronic volume was 70,140 contracts, compared to 32,881 contracts in February 2007. The all-time high for volume on the screen was 72,624 contracts in January 2008.

Year-to-date, total futures volume at the end of February was 363,658 contracts, up from 262,764 contracts last year, the MGE said. Month-end open futures interest was 48,052 contracts, down from 55,018 contracts year.

In options, volume last month was 14,554 contracts, up sharply from 2,015 contracts in February 2007, the MGE said. Year-to-date, options volume was 25,439 contracts at the end of the month, up from 3,951 contracts in February 2007. Month-end open interest in options was 9,585 contracts, up from 3,097 contracts in February 2007, according to the exchange.

Total volume climbed last month as the MGE led a record-breaking rally in US wheat futures amid fears about short supplies of spring wheat and strong demand. Hard red spring wheat, used in bakery flour, is traded at the MGE. Options volume jumped as traders looked for an alternative to the surging futures markets, a MGE trader said.