KCBT Hard Red Winter Wheat futures

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On August 1, 2012, the KCBT board of directors announced the implementation of a new, blended, settlement methodology. The news procedure will incorporate both floor-based and electronic trading in a volume weighted settlement price calculation, pending CFTC approval. The settlement price of the lead contract month shall be determined by the weighted average method of the trades in the closing period executed both on the electronic trading system and in the trading pit, rounded to the nearest price tick. KCBT plans to make this methodology effective on August 20, 2012. [1]


Hard Red Winter Wheat futures
Exchange Kansas City Board of Trade
Settlement Physically delivered
Contract Size 5,000 bushels
Pricing Unit Not Applicable
Tick Value 1/4 cent per bushel ($12.50 per contract)
Contract Months March, May, July, September, December
First Notice Date The business day preceding the first business day of the liquidating month
Last Trading Day There is no trading after the business day preceeding the fifteenth (15th) calendar day of the liquidating month
  Open Outcry Electronic
Trading Hours 9:30 a.m. to 2:00 p.m. Monday through Friday, 7:20-2:00 on USDA report release dates. Beginning July 25, 2012. 5 p.m. to 2 p.m. CT Sunday through Friday
Ticker Symbol KW KE
Price Limits Price limits will be set at 60 cents per bushel above or below the previous day’s settlement price and will increase by 50 percent the following trading session when the price of two or more futures contract months within the first five listed non-spot contract months, or the final contract month of a crop year, closes at limit bid or limit offer. Price limits can expand two consecutive times: to a 90 cent per bushel limit and then to a maximum $1.35 per bushel limit. Daily price limits will step back to their prior levels when no futures contract month closes at limit bid or limit offer that day. If price limits are $1.35 per bushel and no wheat futures contract month closes limit bid or limit offer, daily price limits for all contract months revert back to 90 cents per bushel the next business day. If price limits are 90 cents per bushel and no wheat futures contract month closes limit bid or limit offer, daily price limits for all contract months revert back to 60 cents per bushel the next business day. There shall be no price limits on the current month contract on or after the second business day preceding the first day of the delivery month. Price limits will be set at 60 cents per bushel above or below the previous day’s settlement price and will increase by 50 percent the following trading session when the price of two or more futures contract months within the first five listed non-spot contract months, or the final contract month of a crop year, closes at limit bid or limit offer. Price limits can expand two consecutive times: to a 90 cent per bushel limit and then to a maximum $1.35 per bushel limit. Daily price limits will step back to their prior levels when no futures contract month closes at limit bid or limit offer that day. If price limits are $1.35 per bushel and no wheat futures contract month closes limit bid or limit offer, daily price limits for all contract months revert back to 90 cents per bushel the next business day. If price limits are 90 cents per bushel and no wheat futures contract month closes limit bid or limit offer, daily price limits for all contract months revert back to 60 cents per bushel the next business day. There shall be no price limits on the current month contract on or after the second business day preceding the first day of the delivery month.
 
Hard Red Winter Wheat options
Trade Unit One futures contract
Point Value 1 cent ($50 per contract)
Tick Value 1/8 cent ($6.25 per contract)
Option Months Serial
Strike Prices Integral multiples of 10 cents per bushel
Exercise Style American
  Open Outcry Electronic
Trading Hours 9:30 a.m. to 2:00 p.m. Monday through Friday, 7:20-2:00 on USDA report release dates. Beginning July 25, 2012. 5 p.m. to 2 p.m. CT Sunday through Friday
Ticker Symbol OKE (P or C) EC or EP
Price Limits Price limits will be set at 60 cents per bushel above or below the previous day’s settlement price and will increase by 50 percent the following trading session when the price of two or more futures contract months within the first five listed non-spot contract months, or the final contract month of a crop year, closes at limit bid or limit offer. Price limits can expand two consecutive times: to a 90 cent per bushel limit and then to a maximum $1.35 per bushel limit. Daily price limits will step back to their prior levels when no futures contract month closes at limit bid or limit offer that day. If price limits are $1.35 per bushel and no wheat futures contract month closes limit bid or limit offer, daily price limits for all contract months revert back to 90 cents per bushel the next business day. If price limits are 90 cents per bushel and no wheat futures contract month closes limit bid or limit offer, daily price limits for all contract months revert back to 60 cents per bushel the next business day. There shall be no price limits on the current month contract on or after the second business day preceding the first day of the delivery month. Price limits will be set at 60 cents per bushel above or below the previous day’s settlement price and will increase by 50 percent the following trading session when the price of two or more futures contract months within the first five listed non-spot contract months, or the final contract month of a crop year, closes at limit bid or limit offer. Price limits can expand two consecutive times: to a 90 cent per bushel limit and then to a maximum $1.35 per bushel limit. Daily price limits will step back to their prior levels when no futures contract month closes at limit bid or limit offer that day. If price limits are $1.35 per bushel and no wheat futures contract month closes limit bid or limit offer, daily price limits for all contract months revert back to 90 cents per bushel the next business day. If price limits are 90 cents per bushel and no wheat futures contract month closes limit bid or limit offer, daily price limits for all contract months revert back to 60 cents per bushel the next business day. There shall be no price limits on the current month contract on or after the second business day preceding the first day of the delivery month.

Notes

References

  1. KCBT Announces New Settlement Methodology for HRW Wheat Futures. KCBT.
Last modified on 23 January 2014, at 11:05