Wheat futures price limits expand to 90c a bu
February 12, 2008
by Josh Sosland
KANSAS CITY — Wheat futures price limits on the Kansas City Board of Trade, the Minneapolis Grain Exchange and the CME Group will expand to 90c a bu Feb. 13 from 60c.
The limits were expanded following a plunge in prices on all three futures exchanges Feb. 12. Contracts were locked the limit 60c a bu down in four contracts in Kansas City, three in Chicago and four in Minneapolis. The nearby March contract in Minneapolis was locked the limit up, closing at a new high of $16.73 per bu.
Under new rules at all three exchanges agreed upon late Friday, Feb. 8, the limits will be widened by 50% on any exchange the session after two or more wheat futures contracts within a single crop year closes at a limit bid or offer. If two contracts again are limit up or down Feb. 13, the limit will expand to $1.35.
Under the formula, the limit will return to 60c when no contract month closes limit bid or limit offer for three consecutive business days.