Difference between revisions of "CME Group Wheat"

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|ltd      =  Business day prior to the 15th calendar day of the contract month.
 
|ltd      =  Business day prior to the 15th calendar day of the contract month.
 
|unit    =  5,000 bushels (Deliverable grade: No. 2 Soft Red Winter, No. 2 Hard Red Winter, No. 2 Dark Northern Spring, and No. 2 Northern Spring at par; No. 1 Soft Red Winter, No. 1 Hard Red Winter, No. 1 Dark Northern Spring and No. 1 Northern Spring at 3 cents per bushel over contract price)
 
|unit    =  5,000 bushels (Deliverable grade: No. 2 Soft Red Winter, No. 2 Hard Red Winter, No. 2 Dark Northern Spring, and No. 2 Northern Spring at par; No. 1 Soft Red Winter, No. 1 Hard Red Winter, No. 1 Dark Northern Spring and No. 1 Northern Spring at 3 cents per bushel over contract price)
|ptdesc  =  <!-- Description of one contract point, e.g. 0.0001 cents per pound -->
+
|ptdesc  =  Cents per bushel <!-- Description of one contract point, e.g. 0.0001 cents per pound -->
 
|ptval    =  <!-- Dollar (or other currency) value of a single contract point -->
 
|ptval    =  <!-- Dollar (or other currency) value of a single contract point -->
 
|tickPt  =  <!-- Number of points per trading tick, eg 2.5 -->
 
|tickPt  =  <!-- Number of points per trading tick, eg 2.5 -->
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|elSym    =  ZW
 
|elSym    =  ZW
 
|outcry  =  Y
 
|outcry  =  Y
|ooHours  =  9:30 a.m. - 1:15 p.m. Central Time, Mon-Fri. Trading in expiring contracts closes at noon on the last trading day.
+
|ooHours  =  Sunday – Friday, 7:00 p.m. – 7:45 a.m. CT and Monday – Friday, 8:30 a.m. 1:20 p.m. CT
  
 
|ooLimit  =  Sixty cents ($0.60) per bushel ($3,000/contract) above or below the previous day's settlement price. No limit in the spot month (limits are lifted beginning on First Position Day).
 
|ooLimit  =  Sixty cents ($0.60) per bushel ($3,000/contract) above or below the previous day's settlement price. No limit in the spot month (limits are lifted beginning on First Position Day).
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|options  =  x
 
|options  =  x
|opUnit    =  <!-- Trade unit -- leave blank unless it's something other than "One futures contract" -->
+
|opUnit    =  One Chicago SRW Wheat futures contract (of a specified month) of 5,000 bushels <!-- Trade unit -- leave blank unless it's something other than "One futures contract" -->
|opMonths  =  Jul, Sep, Dec, Mar, May; a monthly (serial) option contract is listed when the front month is not a standard option contract. The monthly option contract exercises into the nearby futures contract. For example, an August option exercises into a September futures position.
+
|opMonths  =  March (H), May (K), July (N), September (U) & December (Z); a monthly (serial) option contract is listed when the front month is not a standard option contract. The monthly option contract exercises into the nearby futures contact. For example, an August option exercise into a September futures position.
  
  
|opPtdesc  = <!-- description of point value, e.g 0.5 cents per bushel, dollars per ounce -->
+
|opPtdesc  =   <!-- description of point value, e.g 0.5 cents per bushel, dollars per ounce -->
|opPtval  = <!-- dollar (or other currency) value of one market point -->
+
|opPtval  =   <!-- dollar (or other currency) value of one market point -->
|opTickPt  = <!-- option tick size in points -->
+
|opTickPt  =   <!-- option tick size in points -->
 
|opTickVal =  1/8 cent/bushel ($6.25/contract)
 
|opTickVal =  1/8 cent/bushel ($6.25/contract)
|opExercise=  American style: The buyer of a futures option may exercise the option on any business day prior to expiration by giving notice to the Board of Trade clearing service provider by 6:00 p.m. Chicago time. Option exercise results in an underlying futures market position. Options in-the-money on the last day of trading are automatically exercised.  
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|opExercise=  The buyer of a futures option may exercise the option on any business day prior to expiration by giving notice to the Clearing House by 6:00 p.m. Chicago time. Option exercise results in an underlying futures market position. Options in-the-money on the last day of trading are automatically exercised.
 
|opElect  =  x
 
|opElect  =  x
|opEHours  =  6:00 p.m. - 6:00 a.m. Central Time, Sun.-Fri.
+
|opEHours  =  Sunday – Friday, 7:00 p.m. – 7:45 a.m. CT and
 +
Monday – Friday, 8:30 a.m. – 1:20 p.m. CT
 
|opELimit  =  Sixty cents ($0.60) per bushel ($3,000/contract) above or below the previous day's settlement premium. Limits are lifted on the last trading day.
 
|opELimit  =  Sixty cents ($0.60) per bushel ($3,000/contract) above or below the previous day's settlement premium. Limits are lifted on the last trading day.
 
|opESym    =  OZW
 
|opESym    =  OZW
 
|opOutcry  =  x
 
|opOutcry  =  x
|opOHours  =  9:30 a.m. - 1:15 p.m. Central Time, Mon-Fri.
+
|opOHours  =  Monday – Friday, 8:30 a.m. 1:15 p.m.
 +
CT with Post session until 1:20 p.m. CT immediately following the close
  
 
|opOLimit  =  Sixty cents ($0.60) per bushel ($3,000/contract) above or below the previous day's settlement premium. Limits are lifted on the last trading day.
 
|opOLimit  =  Sixty cents ($0.60) per bushel ($3,000/contract) above or below the previous day's settlement premium. Limits are lifted on the last trading day.
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*[http://www.cmegroup.com CME Group Web site]
 
*[http://www.cmegroup.com CME Group Web site]
 
*[http://www.farmdoc.uiuc.edu/irwin/research/CBOTFuturesPerformance.pdf THE PERFORMANCE OF CHICAGO BOARD OF TRADE CORN, SOYBEAN, AND WHEAT FUTURES CONTRACTS AFTER RECENT CHANGES IN SPECULATIVE LIMITS by Scott H. Irwin, Philip Garcia, and Darrel L. Good]
 
*[http://www.farmdoc.uiuc.edu/irwin/research/CBOTFuturesPerformance.pdf THE PERFORMANCE OF CHICAGO BOARD OF TRADE CORN, SOYBEAN, AND WHEAT FUTURES CONTRACTS AFTER RECENT CHANGES IN SPECULATIVE LIMITS by Scott H. Irwin, Philip Garcia, and Darrel L. Good]
 +
*[http://www.cmegroup.com/confluence/display/EPICSANDBOX/Wheat Wheat Settlement Procedures]
 +
*[http://www.cmegroup.com/rulebook/files/position-limits-cbot.xlsx CBOT Position Limits]
 +
*[http://www.cmegroup.com/rulebook/CBOT/II/14/14.pdf CBOT 14]
 +
*[http://www.cmegroup.com/clearing/trading-practices/block-trades.html#nymexComexProducts Block Minimum Thresholds]
 +
*[http://www.cmegroup.com/trading/Price-Limit-Update.html Price Limits]
 +
*[http://www.cmegroup.com/tools-information/vendorSymbol.html Quote Vendor Symbols Listing]
  
 
== References ==
 
== References ==
 
<references />
 
<references />
 
[[Category:CME Group]]
 
[[Category:CME Group]]

Latest revision as of 14:36, 14 June 2018

SONIA Futures MarketsWiki 728x120.jpg

CME Group wheat futures and options trade both by open outcry and by electronic trading. During what are called "regular trading hours" (RTH), wheat futures trade side by side on Globex and on the trading floor, while options trade only on the trading floor. During electronic trading hours (ETH), both wheat futures and options are traded.

Background

What has been a staple food product of major civilizations in Europe, Western Asia and North Africa for 8000 years.[1]

Wheat futures and options migrated from the eCBOT trading platform to CME Globex on the evening of Jan. 13, 2008.

On August 5, 2010, CBOT wheat futures and options had record volume on futures listings of 354,169 contracts. The prior record was 294,345 on August 2, 2010.[2]

In July of 2013, the exchange announced the launch of Short-Dated New Crop Options on KC Hard Red Winter (HRW) Wheat futures, pending CFTC approval. The options will be available for trading on the Chicago trading floor and CME Globex on Monday, August 26, 2013, and will be subject to the rules and regulations of the KCBT.[3]

Commitments of Traders

The Commodity Futures Trading Commission regularly issues Commitments of Traders reports that show the distribution of open positions among different classes of traders. Information about wheat positions is available in this report.[4]

Delayed Quotes

Delayed quotes on CME Group wheat are available on the CBOT Web site.[5]

Controversy

There has been some debate regarding whether the exchange should take measures to change the specifications of the contract. Some traders and analysts believe the contract needs to be switched to a cash index settlement. Others think a complete change in the contract's physical delivery locations is needed. The problem is a lack of convergence between futures and cash prices at futures expiration.[6]

Contract Specifications

Wheat futures
Exchange CME Group
Settlement Physically delivered
Contract Size 5,000 bushels (Deliverable grade: No. 2 Soft Red Winter, No. 2 Hard Red Winter, No. 2 Dark Northern Spring, and No. 2 Northern Spring at par; No. 1 Soft Red Winter, No. 1 Hard Red Winter, No. 1 Dark Northern Spring and No. 1 Northern Spring at 3 cents per bushel over contract price)
Pricing Unit Need pricing unit!
Tick Value 1/4 cent per bushel ($12.50/contract)
Contract Months Mar, May, Jul, Sep, Dec
Last Trading Day Business day prior to the 15th calendar day of the contract month.
  Open Outcry Electronic
Trading Hours Sunday – Friday, 7:00 p.m. – 7:45 a.m. CT and Monday – Friday, 8:30 a.m. – 1:20 p.m. CT 6:00 p.m. - 6:00 a.m.(**) and 9:30 a.m. - 1:15 p.m. Central Time, Sun.-Fri. Trading in expiring contracts closes at noon on the last trading day.
Ticker Symbol W ZW
Price Limits Sixty cents ($0.60) per bushel ($3,000/contract) above or below the previous day's settlement price. No limit in the spot month (limits are lifted beginning on First Position Day). Sixty cents ($0.60) per bushel ($3,000/contract) above or below the previous day's settlement price. No limit in the spot month (limits are lifted beginning on First Position Day).
 
Wheat options
Trade Unit One Chicago SRW Wheat futures contract (of a specified month) of 5,000 bushels
Point Value Need point value!
Tick Value 1/8 cent/bushel ($6.25/contract)
Option Months March (H), May (K), July (N), September (U) & December (Z); a monthly (serial) option contract is listed when the front month is not a standard option contract. The monthly option contract exercises into the nearby futures contact. For example, an August option exercise into a September futures position.
Strike Prices 5 cents/bushel for the first two months and 10 cents/bushel for all other months. At the commencement of trading, list 5 strikes above and 5 strikes below the at-the-money strike.
Exercise Style The buyer of a futures option may exercise the option on any business day prior to expiration by giving notice to the Clearing House by 6:00 p.m. Chicago time. Option exercise results in an underlying futures market position. Options in-the-money on the last day of trading are automatically exercised.
  Open Outcry Electronic
Trading Hours Monday – Friday, 8:30 a.m. – 1:15 p.m.

CT with Post session until 1:20 p.m. CT immediately following the close

Sunday – Friday, 7:00 p.m. – 7:45 a.m. CT and

Monday – Friday, 8:30 a.m. – 1:20 p.m. CT

Ticker Symbol WY for calls/WZ for puts OZW
Price Limits Sixty cents ($0.60) per bushel ($3,000/contract) above or below the previous day's settlement premium. Limits are lifted on the last trading day. Sixty cents ($0.60) per bushel ($3,000/contract) above or below the previous day's settlement premium. Limits are lifted on the last trading day.

Notes

Also See

CME Group commodity products

Resources

References

  1. Wheat. Fastonline.org.
  2. CME Group Wheat Futures and Options Reach Record Volume. CME Group.
  3. CME Group Announces Launch of KC HRW Wheat Short-Dated New Crop Options. CME Group.
  4. Commitments of Traders. Commodity Futures Trading Commission.
  5. CME Group Wheat Quotes. CME Group.
  6. ANALYSIS-Pressure Builds To Fix Broken CBOT Wheat Contract. Forbes.