MGE October futures, options volume falls from last year

Total futures and options volume at the Minneapolis Grain Exchange in October fell from the previous month and last year, according to data issued Monday (November 2) by the exchange.

Volume was 113,094 contracts, down from 123,826 contracts in September and 125,420 contracts in October 2008, the MGE said. Year-to-date volume at the end of the month was 1,018,668 contracts, down from 1,248,731 contracts at the same time last year, according to the exchange.

Futures volume in October was down from a year earlier, although options volume was stronger. Futures volume was 111,337 contracts, compared to 120,703 contracts in September and 123,844 contracts in October 2008, according to the MGE. Options volume in October was 1,757 contracts, compared to 3,123 contracts in September and 1,576 contacts in October 2008.

The MGE set a new October electronic trading record for hard red spring wheat futures and options of 89,049 contracts, surpassing the October 2008 record by 6,143 contracts, according to the exchange. This is the first year MGE has traded futures exclusively on an electronic platform.

The exchange's soft red winter wheat index saw a sharp increase in volume to 5,990 contracts from 120 contracts in September and zero in October 2008. Analysts have said some traders appear to be looking to the financially-settled SRW wheat index contract amid frustration with the performance of the Chicago Board of Trade soft red winter wheat futures contract.

Total month-end open interest at the MGE was 52,690 contracts, up from 39,271 contracts at the close of October 2008 but down from 54,069 contracts at the end of September. Month-end open interest in the soft red winter wheat index was 2,110 contracts, up from 103 contracts at the end of September and compared to zero contracts in October 2008.

"The increase in October open interest and electronic trading volume reflects our market participants' desire to take advantage of the quality risk management products offered by MGEX," exchange Chief Executive Mark Bagan said in a statement.

The MGE primarily trades hard red spring wheat futures and options. Hard red spring wheat is grown in the northern Plains and used to make bread, while soft red winter wheat is grown in the eastern third of the country and is used to make pastries and snack foods.