CME introducing mini-sized wheat futures

by World Grain Staff
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CHICAGO, ILLINOIS, U.S. — CME announced that it will introduce a mini-sized KC HRW wheat futures on March 24. 

It joins the suite of corn, soybean and Chicago SRW mini-sized futures. At one-fifth the size of standard-sized futures, these 1,000 bushel contracts are highly attractive to commercial market participants who need more precise hedging tools, and other traders whose strategies are better served by smaller sized products, CME said.

The deliverable grades for KC HRW mini-sized wheat futures are the same as the standard-sized (5,000 bushel) contract. Other features and benefits include:

• Mini-sized KC HRW wheat futures positions can be offset against the standard-sized KC HRW wheat contract on 5 to 1 basis
• Smaller tick size value (1/8 of a cent =$1.25 per contract vs. $12.50 for standard-sized contract)
• Lower margin requirements due to smaller size. 
• Extended trading window (15 minutes) allows mini-sized contracts to be used to adjust standard sized contract positions at the end of each trading day
• Trade both open outcry and via CME Globex