Market Matters Blog

Effective April 30 for trade date May 1, the Board of Trade of the City of Chicago Inc. ("CBOT" or "Exchange") will reset price limits for grain and oilseed futures.

"This is the first of the two price limit resets in 2024 that is stipulated by the variable price limits mechanism pursuant to each product's respective Rulebook Chapter," according to a CME press.

Corn futures price limit will go from 35 cents per bushel to 30 cents with extended price limit of 45 cents. Oats futures price limit will go from 30 cents per bushel to 25 cents with an extended price limit of 40 cents.

Soybean futures price limit will go from 95 cents per bushel to 85 cents with extended price limit of $1.30. Soybean oil futures price limit will go from $0.040 per pound to $0.035/pound with extended price limit of $0.055/pound. Soybean meal futures price limit will stay at $25 per ton with extended price limit unchanged of $40 per ton.

Chicago wheat futures and Kansas City wheat futures price limit will go from 50 cents per bushel to 40 cents with extended price limit of 60 cents. All other price limits affected can be found at https://www.cmegroup.com/….

In 2014, CME Group put a new percentage-based daily price limit procedure in CBOT grain and oilseeds products, including corn, soybeans, CBOT wheat, Kansas City wheat, soybean meal, soybean oil, oats and rough rice.

CME noted, "The new methodology is a more flexible, transparent and market-based price-limit setting mechanism. It would allow price limits to expand under high prices, but also allow price limits to retract when prices fall."

The new variable price limit mechanism will allow higher limits when prices are high and lower limits when prices are low.

"The new variable price-limit mechanism resets price limits in each of the CBOT grain and oilseed futures contracts every six months, with the first reset date being on the first trading day in May," according to the CME.

Here is the entire table of all new price limits and links mentioned by the CME in the April 23 announcement: https://www.cmegroup.com/…

Here is the March 12, 2014, variable price limit announcement to better understand the process: https://www2.dtn.com/…

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

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