Market Matters Blog

CME Resets Price Limits for Grain, Oilseed, Lumber Futures

Mary Kennedy
By  Mary Kennedy , DTN Basis Analyst
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The first of the two grain and oilseed price limit resets in 2021 that are stipulated by the variable price limits mechanism will take place May 2, 2021, according to the CME. (photo by mattgriffin, CC BY-SA 2.0)

In a recent press release, the CME noted that, effective Sunday, May 2, 2021, for trade date Monday, May 3, 2021, The Board of Trade of the City of Chicago, Inc. ("CBOT") and Chicago Mercantile Exchange Inc. ("CME") (collectively, "the Exchanges") will reset price limits for grain, oilseed and lumber futures. This is the first of the two price limit resets in 2021 that are stipulated by the variable price limits mechanism pursuant to each product's respective Rulebook Chapter.

The new futures price limits effective on trade date May 3, 2021, are shown in the table below and will remain in effect until the first trading day in November 2021, the press release noted. For financially settled (Platts) Black Sea Corn, Black Sea Wheat, Black Sea Sunflower Oil, FOB Santos Soybeans, Thailand Long Grain White Rice, and Australian Wheat, and for Random Length Lumber, there shall be no price limits during the contract month; for all other contracts below, 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.

CME added, "All mini-sized grain and oilseed futures will have the same daily price limits as their corresponding standard-sized futures. Contracts with no price data retain their existing daily price limit. In addition, please be reminded that CBOT previously removed price limits for all grain and oilseed options contracts."

Below are the CME grain and oilseed changes and here is the link to all other commodity price limit changes: https://www.cmegroup.com/…

  1. Corn Current: 25 cents per bushel(/bu); New Limit:40 cents/bu; New Expanded: 60 cents/bu
  2. Soybeans Current: 70 cents/bu; New Limit: $1/bu; New Expanded: $1.50/bu
  3. Soybean oil Current: $0.025/lb; New Limit: $0.035/lb; New Expanded: $0.055/lb
  4. KC Wheat Current: 40 cents/bu; New Limit:45 cents/bu; New Expanded: 70 cents/bu
  5. Chicago Wheat Current: 40cents/bu; New Limit: 45 cents/bu; New Expanded: 70 cents/bu

There is currently no price limit change to the Minneapolis hard red spring wheat futures. Per the MGEX website, the price limit for HRS wheat is $0.60 per bushel or $3,000 per contract for every other month. No limit for the spot month (limits are subject to change, please refer to the MGEX Rulebook or homepage for current limit information). http://www.mgex.com/…

Mary Kennedy can be reached at mary.kennedy@dtn.com

Follow her on Twitter @MaryCKenn

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