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|Contract Specification||Wheat Futures|
|CME Globex Product Symbol (Electronic Trading)||ZW|
|Open Outcry Product Symbol (Trading Floor)||W|
|Contract Size||Each futures contract shall be for 5,000 bushels of No. 2 Soft Red Winter, No. 2 Hard Red Winter, No. 2 Dark Northern Spring, and No. 2 Northern Spring at par; and No. 1 Soft Red Winter, No. 1 Hard Red Winter, No. 1 Dark Northern Spring and No. 1 Northern Spring at 3 cents per bushel over contract price. Every delivery of wheat may be made up of the authorized grades for shipment from eligible regular facilities provided that no lot delivered shall contain less than 5,000 bushels of any one grade in any one facility|
|Price Quotation||Cents per bushel|
|Venue||CME Globex, Open Outcry|
|CME Globex Hours (EST)||6:00 pm - 7:15 am and 9:30 am - 1:15 pm central time, Sunday - Friday Central Time|
|Open Outcry Hours (EST)||9:30 am - 1:15 pm Central Time, Monday - Friday|
|Minimum Fluctuation||The minimum fluctuation for wheat futures shall be 1/4 cent per bushel ($12.50 per contract), including spreads.|
|Daily Price Limits||There shall be no trading in wheat futures at a price more than $0.60 per bushel ($3,000 per contract) above or below the previous day’s settlement price. Should two or more wheat futures contract months within the first five listed non-spot contracts (or the remaining contract month in a crop year) close at limit bid or limit offer, the daily price limits for all contract months shall increase to $0.90 per bushel the next business day. Should two or more wheat futures contract months within the first five listed non-spot contracts (or the remaining contract month in a crop year) close at limit bid or limit offer while price limits are $0.90 per bushel, daily price limits for all contract months shall increase to $1.35 per bushel the next business day. If price limits are $1.35 per bushel and no wheat futures contract month closes limit bid or limit offer, daily price limits for all contract months shall revert back to $0.90 per bushel the next business day. If price limits are $0.90 per bushel and no wheat futures contract month closes limit bid or limit offer, daily price limits for all contract months shall revert back to $0.60 per bushel the next business day. There shall be no price limits on the current month contract on or after the second business day preceding the first day of the delivery month.|
|Position Limits||In accordance with Rule 559., Position Limits and Exemptions, no person shall own or control positions in excess of:
1.) 600 contracts net long or net short in the spot month. In the last five trading days of the expiring futures month in May, the speculative position limit will be 600 contracts if deliverable supplies are at or above 2,400 contracts, 500 contracts if deliverable supplies are between 2,000 and 2,399 contracts, 400 contracts if deliverable supplies are between 1,600 and 1,999 contracts, 300 contracts if deliverable supplies are between 1,200 and 1,599 contracts, and 220 contracts if deliverable supplies are below 1,200 contracts. Deliverable supplies will be determined from the CBOT’s Stocks of Grain report on the Friday preceding the first notice day for the May contract month.
2.) 5,000 futures-equivalent contracts net long or net short in any single contract month excluding the spot month. Additional futures contracts may be held outside of the spot month as part of futures/futures spreads within a crop year provided that the total of such positions, when combined with outright positions, does not exceed the all months combined limit.
3.) 6,500 futures-equivalent contracts net long or net short in all months combined.
4.) Limit on Holdings of Registered and Outstanding Shipping Certificates – No person, at any time, shall own or control more than 600 registered and outstanding Wheat Shipping Certificates issued by facilities designated by the Exchange as regular to issue shipping certificates for Wheat. The 600 certificate maximum shall include mini-sized Wheat certificates such that each mini-sized certificate represents the equivalent of one-fifth of a full-sized certificate.
If a person stops Wheat certificates for delivery in a quantity that would cause such person to exceed the 600 certificate limit, the person must cancel, retender or sell the quantity of certificates in excess of 600 not later than the following business day.
A person seeking an exemption from this limit for bona fide commercial purposes shall apply to the Market Regulation Department on forms provided by the exchange, and the Market Regulation Department may grant qualified exemptions in its sole discretion.
For the purposes of this rule, one mini-sized wheat contract is equivalent to one-fifth of a corresponding full-sized wheat contract, and positions in wheat and mini-sized wheat will be aggregated for the purpose of determining compliance with the contracts’ position limit.
Refer to Rule 559. for requirements concerning the aggregation of positions and allowable exemptions from the specified position limits.
|Termination of Trading||No trades in wheat futures deliverable in the current month shall be made after the business day preceding the 15th calendar day of that month. Any contracts remaining open after the last day of trading must be either:
(a) Settled by delivery no later than the second business day following the last trading day (tender on business day prior to delivery).
(b) Liquidated by means of a bona fide Exchange of Futures for Related Position, no later than the business day following the last trading day.
|Grades/ Grade Differentials||Upon written request by a taker of delivery at the time loading orders are submitted, a futures contract for the sale of wheat shall be performed on the basis of United States origin only.
WHEAT GRADE DIFFERENTIALS
At Contract Price: No. 2 Soft Red Winter, No. 2 Hard Red Winter, No. 2 Dark Northern Spring, No. 2 Northern Spring.
Wheat which contains moisture in excess of 13.5% is not deliverable. A contract for the sale of wheat for future delivery shall be performed on the basis of the grades officially promulgated by the Secretary of Agriculture as conforming to United States Standards at the time of making the contract. If no such United States grades shall have been officially promulgated, then such contract shall be performed on the basis of the grades established by the Department of Agriculture of the State of Illinois, or the standards established by the Rules of the Exchange in force at the time of making the contract.
A taker of delivery of wheat shall have the option to request in writing load-out of wheat which contains no more than 4 (four) parts per million of deoxynivalenol (vomitoxin). At the taker’s expense, a determination of the level of vomitoxin shall be made at the point of load-out by the Federal Grain Inspection Service or by a third party inspection service which is mutually agreeable to the maker and taker of delivery.
Effective September 1, 2009, all wheat shipping certificates shall be marked as either 3 parts per million deoxynivalenol (vomitoxin) or 4 parts per million vomitoxin. Shipping certificates marked as 3 parts per million vomitoxin shall be delivered at contract price, while shipping certificates marked as 4 parts per million shall be delivered at a 12 cent per bushel discount. A taker of delivery of wheat shall have the option to request in writing vomitoxin testing. At the taker’s expense, a determination of the level of vomitoxin shall be made at the point of load-out by the Federal Grain Inspection Service or by a third party inspection service which is mutually agreeable to the maker and taker of delivery. Regular facilities shall load out wheat containing unit average testing results of 3 parts per million vomitoxin or below for canceled shipping certificates marked as 3 parts per million and shall load out wheat containing unit average testing results of 4 parts per million vomitoxin or below for canceled shipping certificates marked as 4 parts per million.
Effective September 1, 2011, all wheat shipping certificates shall be marked as either 2 parts per million deoxynivalenol (vomitoxin), 3 parts per million vomitoxin, or 4 parts per million vomitoxin. Shipping certificates marked as 2 parts per million vomitoxin shall be delivered at contract price, while shipping certificates marked as 3 parts per million shall be delivered at a 12 cent per bushel discount and shipping certificates marked as 4 parts per million shall be delivered at a 24 cent per bushel discount. A taker of delivery of wheat shall have the option to request in writing vomitoxin testing. At the taker’s expense, a determination of the level of vomitoxin shall be made at the point of load-out by the Federal Grain Inspection Service or by a third party inspection service which is mutually agreeable to the maker and taker of delivery. Regular facilities shall load out wheat containing unit average testing results of 2 parts per million vomitoxin or below for canceled shipping certificates marked as 2 parts per million, shall load out wheat containing unit average testing results of 3 parts per million vomitoxin or below for canceled shipping certificates marked as 3 parts per million, and shall load out wheat containing unit average testing results of 4 parts per million vomitoxin or below for canceled shipping certificates marked as 4 parts per million.
|Listed Contracts||March (H), May (K), July (N), September (U) & December (Z). On the last day of trading in an expiring future, the close of the expiring future shall begin at 12 o'clock noon and trading shall be permitted thereafter for a period not to exceed one minute. Quotations made during this one minute period shall constitute the close.|
|Delivery||Wheat certificates shall specify shipment from one of the currently regular for delivery facilities located in one of the following territories:
Wheat for shipment from regular facilities located within the Chicago Switching District, the Burns Harbor, Indiana Switching District, the Northwest Ohio Territory, on Ohio River, on Mississippi River or the Toledo, Ohio Switching District may be delivered in satisfaction of wheat futures contracts. Only No. 1 Soft Red Winter and No. 2 Soft Red Winter Wheat for shipment from regular facilities located within the St. Louis-East St. Louis and Alton Switching Districts may be delivered in satisfaction of Wheat futures. When used in these Rules, Burns Harbor, Indiana Switching District will be that area geographically defined by the boundaries of Burns Waterway Harbor at Burns Harbor, Indiana which is owned and operated by the Indiana Port Commission. The Northwest Ohio Territory shall be shuttle loading facilities within the following 12 counties: Allen, Crawford, Hancock, Hardin, Henry, Huron, Marion, Putnam, Sandusky, Seneca, Wood, and Wyandot. The Ohio River facilities shall be river loading facilities on the Ohio River from mile marker 455 to the Mississippi River. The Mississippi River facilities shall be river loading facilities on the Mississippi River downriver from the St. Louis-East St. Louis Alton Switching District to mile marker 715.
|Exchange Rule||These contracts are listed with, and subject to, the rules and regulations of CBOT.|
The wheat futures marketplace is a global industry, with many different wheat futures available for people to utilize. The most popular wheat futures in the United States are the Chicago and KC varieties, which have been around for a while.
The Australian and Black Sea Wheat Futures are also growing in popularity, with all four providing traders with the market diversification they need to participate in the market.
Here are the several types of wheat futures currently available:
Cannon Trading can help traders navigate these various markets, helping them find options that work best for their budget and portfolio. Our team of brokers is here to help traders learn about the market while giving them the tools necessary to analyze it.
Chicago Wheat Futures are the industry standard in the wheat futures trading market. These contracts are globally-recognized as an actively-traded wheat benchmark for the world.
The Chicago What Futures have a reputation as a future with a high amount of liquidity. A trader can choose from different types of trading vehicles using wheat futures when considering Chicago Wheat Futures and Options.
Here are just a few of the standard options that traders can utilize:
These options give people a variety of choices when it comes to which futures to pursue. For this reason, Chicago Wheat Futures and Options remain some of the most popular on the market today.
Another US-based Wheat Futures option is the KC Wheat Future. This option is not as popular as the Chicago Wheat Future, but it is an excellent tool for traders and hedgers. This type of wheat future is an appropriate risk management tool, primarily since it represents the bulk of the United States wheat products.
This futures order consists of Hard Red Winter Wheat, which is the primary ingredient in bread production worldwide. Much like Chicago Wheat Futures, there are many different options to choose from in the KC Wheat Futures categories.
These options include:
These futures options are relatively new to the futures market, as they were just released in 2017. The introduction of this type of future responded to the Black Sea area's pivotal role in the world's wheat trade.
These options might be considered regional, but they are also accessible to the rest of the world.
Some of the benefits of trading Black Sea Wheat FOB Futures include:
This future gets its value from the Platts price assessment. Despite this fact, the future sees wide usage on a global scale, giving it massive appeal to traders worldwide.
In June 2017, Australian wheat futures were launched to the global audience. The Australian exchange created these futures shortly before the Black Sea Wheat FOB Futures launch. The success of these new futures helped to pave the way for further growth in the wheat futures trading industry.
These futures saw an introduction because they provided Australia's wheat market with even more growth. Since wheat constitutes a significant winter crop in Australia, it sees a lot of usage in the import and export business. Asia and Europe receive a lot of Australian wheat, so it is a thriving Australian economy.
This type of future, like the Black Sea Wheat FOB Futures, is available to a global audience. This type of future has pricing based on the Platts price assessment, where the contract receives its value.
Australian Wheat FOB Futures have the following benefits:
These futures are optimal for traders looking to participate in the global market, as they allow traders from around the world to take advantage of them.
Like other types of commodities, Wheat futures constantly grow and change due to seasonality, supply/demand, weather and other factors. These futures can be highly unpredictable, significantly as the market itself fluctuates.
We recommend finding a platform to analyze the market for traders who want to learn how to study charts, seasonality and other rhythmic fluctuations in the market. Platforms can show traders the annual, monthly, weekly, daily and intraday behavior of these futures and options, giving them a better idea about the state of the market.
Cannon Trading has many different platforms and programs for traders to use to analyze the market. These tools allow traders to effectively navigate the market, giving them access to direct trading of wheat futures.
Our experienced team of brokers is one of the first in the industry. We opened our doors in 1988, which has led us to network with various traders across the nation and the world.
Since we opened, we have received several customer service awards and have consistently maintained good standing with the NFA and CFTC, our regulators.
At Cannon Trading, we have the tools traders need to make informed decisions before investing and/or trading in the futures market.
We provide access to cutting-edge software and programs that put our traders at the forefront of the industry. We have significant knowledge of the Wheat Futures market, among many others, and we want to help our clients take full advantage of the growing industry.
Cannon Trading's experienced brokers can help clients learn more about futures, offering insight into the overall structure of the market, as well.
We work with traders, investors, and entities from many different backgrounds, including:
Whether you're a beginning trader or an experienced one, our brokers can help you navigate the market. We have direct experience with the market so that we can help our clients best navigate the market.
Our professional commodities brokers will work with you to understand your specific trading style and requirements and provide you with the essential advice and information you need to thrive in this highly regulated market.
Cannon Trading's Broker-assisted Trading solution provides traders new to the field with the essential advice and tools they need to accelerate their understanding of whichever markets they are interested in.
Contact us today to learn more about commodities trading and information on options on commodities and futures.
Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve a substantial risk of loss and are not suitable for all investors.
Past performance is not indicative of future results. You should carefully consider whether trading is suitable for you regarding your circumstances, knowledge, and financial resources.
You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time.
You and your broker will work together to achieve your trading goals. We develop long term
relationships with our clients so that we can grow and improve together.
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