April 2, 2008

MGE March spring wheat drops 9 percent from year ago

Total spring wheat futures and options volume at the Minneapolis Grain Exchange last month was down 9 percent from a year earlier, according to data released Tuesday by the exchange.

Total volume was 105,250 contracts, down from 115,483 contracts in March 2007, the MGE said.

Futures volume was 103,344 contracts, down from 112,446 contracts a year ago, while options volume was 1,906 contracts, down from 3,037 contracts.

High volatility may have caused the drop in volume from a year ago, traders said. Some market participants took a step back amid big price swings and jitters about the US economy, they said.

Year-to-date volume at the MGE remained higher than a year ago. At the end of March, volume for the year was 494,347 contracts, up from 382,198 contracts at the same time in 2007, the MGE said.

Total open interest last month was 57,977 contracts, up from 56,792 contracts in March 2007, according to the exchange.

Monthly futures open interest was 47,514 contracts, down from 51,461 contracts a year earlier, and monthly options open interest was 10,463 contracts, up from 5,331 contracts.

The MGE trades primarily hard red spring wheat futures and options.