December 3, 2009

KCBT, MGE volumes rise in November from October last year

The Kansas City Board of Trade and Minneapolis Grain Exchange in November each saw total volume rise from the previous month and a year earlier, according to data from the exchanges.

Total futures and options volume at the KCBT, the second-largest US wheat exchange, was 409,277 contracts, up from 279,779 contracts in November 2008 and 378,113 contracts in October 2009, the exchange said. The KCBT trades hard red winter wheat, which is used to make bread and grown in the central and southern US Plains.

HRW wheat futures volume was 400,930 contracts in November, compared to 276,656 contracts a year earlier and 367,433 contracts in October, according to the KCBT. Wheat options volume was 8,347 contracts, compared to 3,123 contracts in November 2008 and 10,680 contacts in October 2009, the exchange said.

"KCBT traders noted that the increase in trading volume was largely due to weather delays in corn and soy harvest, which were leading to postponements in winter wheat planting in some areas," the exchange said in a notice. "Also, as the US dollar declined, new investment money was moving into commodity markets."

Month-end HRW wheat futures open interest was 135,164 contracts, compared to 79,436 contracts at the end of November 2008 and 126,602 contracts at the end of October 2009, the KCBT said. Month-end options open interest was 12,659 contracts, compared to 12,397 contracts at the end of November 2008 and 20,657 contracts at the end of October 2009, according to the exchange.

At the MGE, the smallest of the three US wheat exchanges, total futures and options volume last month was 150,544 contracts, up from 85,216 contracts in November 2008 and 113,094 contracts in October 2009, according to the exchange. The MGE trades hard red spring wheat, which is used to make bread and grown in the northern Plains.

HRS wheat futures volume was 147,953 contracts, up from 84,748 contracts in November 2008 and 111,337 contracts in October 2009, the MGE said. Options volume was 2,591 contracts, up from 468 contracts a year earlier and 1,757 contracts in October 2009, according to the exchange.

Month-end futures open interest at the MGE was 48,114 contracts, up from 27,833 contracts at the end of November 2008 and 45,449 contracts at the end of October 2009, the exchange said. Month-end options open interest was 2,225 contracts, down from 2,270 contracts at the end of November 2008 and 7,241 contracts at the end of October 2009.

The largest US wheat exchange is the Chicago Board of Trade, owned by CME Group (CME). It trades soft red winter wheat, which is used to make pastries and snack foods and grown in the eastern third of the country.