Chicago | Reuters — Daily price limits for Chicago Board of Trade (CBOT) corn and wheat futures will rise starting in May, while soybean limits will not change following a semi-annual review, CBOT parent CME Group said Thursday.
Under exchange rules, the CBOT resets daily limits for grains and oilseeds in May and November of each year, based on a percentage of the average settlement price of benchmark contracts during a roughly nine-week observation period.
The new limits will go into effect Thursday next week (April 30) for May 1 trading.
For corn, daily limit will move to 30 cents per bushel from the current 25 cents (all figures US$).
The limit for CBOT wheat will rise to 40 cents from 35 cents, and the limit for K.C. hard red winter wheat will stay at 40 cents.
For soybeans, the daily limit will remain at 70 cents per bushel.
For soymeal, the limit will stay at $25 per short ton, while the limit for soyoil will fall to two cents per pound from the current 2.5 cents.
The limit on rough rice futures will decline to 75 cents per hundredweight from 90 cents. The limit for oats will fall to 20 cents per bushel from 25 cents.
Limits for all grain futures can be expanded in the session following a limit-up or limit-down settlement.
Daily limits are lifted for the current month contract on or after the second business day preceding the first day of the delivery month.
The CBOT eliminated price limits for all grain and oilseed options contracts in 2014.
–– Reporting for Reuters by Julie Ingwersen in Chicago.