KANSAS CITY, MISSOURI, U.S. — During August, the Kansas City Board of Trade (KCBT) broke all previous monthly exchange volume records, with hard red winter wheat (HRW) futures volume leading the gains, the KCBT announced on Sept. 1. This is the third month in a row that a new all-time monthly volume record has been set for the HRW wheat futures contract and the exchange as a whole.
KCBT exchange volume traded during the month of August totaled 765,357 contracts, breaking the previous monthly volume record of 650,626 contracts, set just last month, by 17.6%. Volume traded in August was more than double that of August 2009, in which 348,081 contracts were traded.
HRW wheat futures trading volume in August amounted to 752,383 contracts, breaking the previous monthly volume record of 635,546 contracts, also set last month, by 18.4%. Trading volume for the month was 120.3% higher than August 2009.
A combination of factors led to the record-breaking volume. Weather issues in Europe continue to help drive exports of U.S. wheat higher, according to KCBT traders. First there was the drought in Russia and now excessive rains in Germany are creating quality issues there. Traders added that they are also watching weather developments in Argentina and Australia as we enter the important month of September.
Open interest in the HRW wheat futures contract is nearly double that of a year ago. Open interest at the end of the Aug. 31 trading session stood at 201,159 contracts, a 99.2% percent increase from the end of August 2009. Wheat options open interest showed a 58.7% increase over the same time period.
Year-to-date volume for the HRW wheat futures contract is running 52.9% ahead of last year at this time. Exchange volume is running 51.1% ahead of last year at this time.