K.C. lowers minimum margins for wheat contract

by Jay Sjerven
Share This:

KANSAS CITY – The Kansas City Board of Trade lowered its minimum margins for its hard red winter wheat futures contract. The margin on hedge transactions was lowered to $1,500 per 5,000-bu contract from $2,000 effective Sept. 29. The reduction was announced in consideration of diminished volatility seen in the contract in recent months.

The margin on hedge transactions had held at $2,000 since November 2008, when it was lowered from $2,500, a level set in August 2008.

The new $1,500 margin level applied to omnibus account and member-for-own-account transactions as well as hedge transactions. The only exception was initial speculative transactions, where the margin was reduced to $1,875 a contract from $2,500.

Comment on this Article
We welcome your thoughtful comments. Please comply with our Community rules.



The views expressed in the comments section of Food Business News do not reflect those of Food Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.