Grain News


CME Group to Introduce KC HRW Mini-Sized Wheat Futures

Date Posted: March 11, 2014

On Sunday, March 23, 2014 (trade date March 24, 2014) participants in the KC Hard Red Winter (HRW) Wheat market will have a new tool for fine tuning their trading strategies.

The Mini-sized KC HRW Wheat futures contract joins the suite of Corn, Soybean and Chicago SRW Mini-sized futures.

At one-fifth the size of standard-sized futures, these 1,000 bushel contracts are highly attractive to commercial market participants who need more precise hedging tools, and other traders whose strategies are better served by smaller sized products.

The deliverable grades for KC HRW Mini-sized Wheat futures are the same as the standard-sized (5,000 bushel) contract.

Other features and benefits include:

• Mini-sized KC HRW Wheat futures positions can be offset against the standard-sized KC HRW Wheat contract on 5 to 1 basis

• Smaller tick size value (1/8 of a cent =$1.25 per contract vs. $12.50 for standard-sized contract)

• Lower margin requirements due to smaller size. For example (as of 3/4/13):

- Chicago SRW standard-sized Wheat futures initial margin: $1890

- Chicago SRW Mini-sized Wheat futures initial margin: $378

• Extended trading window (30 minutes) allows Mini-sized contracts to be used to adjust standard sized contract positions at the end of each trading day

• Trade both open outcry and via CME Globex

View KC HRW Mini-sized Wheat futures contract specifications

For more information on KC HRW Mini-sized Wheat futures, contact:

Joanna Litchfield

joanna.litchfield@cmegroup.com

312-338-2653.

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