For Release: February 8, 2008
Washington, DC – Today, the Commodity Futures Trading Commission (CFTC) approved several amendments to increase the daily price limit on wheat contracts to 60 cents per bushel – up from 30 cents per bushel. The price limit would expand to 90 cents per bushel on the next trading day if the 60-cent limit is reached.
The Minneapolis Grain Exchange, the Kansas City Board of Trade, and the Chicago Mercantile Exchange collectively filed amendments this afternoon requesting expedited review. Under delegated authority from the Commission, the Director of the Division of Market Oversight approved the amendments which will go into effect for trade date Monday, February 11, 2008.
“Wheat futures contracts have reached price limits for the past several days – driven by low inventories and strong global demand. Once price limits are reached, trading in these contracts stops for the remainder of the day, preventing the markets from functioning as intended,” said CFTC Acting Chairman Walt Lukken. “Today, the CFTC approved amendments on an expedited basis to increase the wheat futures contracts’ price limits to enable the markets to fulfill their price discovery and hedging functions.”
Under Section 5c(c)(2)(B) of the Commodity Exchange Act, CFTC approval is required prior to implementation of any material rule amendment to an enumerated agriculture commodity contract if the amendment would apply to existing positions.
R. David Gary
Last Updated: February 8, 2008