Through Oct. 31, a total of 5,646,965 HRW wheat futures contracts or 28.23 billion bushels had traded, exceeding last year's annual volume record of 5,549,842 contracts or 27.75 billion bushels by 1.8% with two months remaining to build on the record. The KCBT hard red winter wheat futures contract is the world benchmark pricing mechanism for bread wheat.
Total exchange volume also set an annual volume record in October with a total of 5,873,465 contracts traded, exceeding last year's annual volume record of 5,697,874 contracts by 3.1% with two months remaining in the year.
"The record-breaking volume can be attributed in part to a rebound in world wheat production and increased volatility due to global economic concerns," said KCBT Chairman Michael P. Simmons. "Also, there have been increases in intra-market and inter-market spread trading. The intra-market spread trading came as a result of wide carries at times which encouraged elevators to lock in carries. The inter-market spread trading included not only wheat spread trading but also KCBT wheat and corn spreads due to increased wheat feed use this year."
HRW wheat futures trading volume in October was the third largest for that calendar month at 386,217 contracts. The October record stands at 430,271 contracts traded last year.
Exchange volume for October of 398,651 contracts was also the third largest for that calendar month with October 2006 volume of 465,752 contracts remaining as the record.
Each KCBT wheat futures contract represents 5,000 bushels of wheat.