Chicago | Reuters — Daily price limits for most Chicago Board of Trade (CBOT) grain and oilseed futures will narrow starting in November following a semi-annual review, the CME Group, parent of the exchange, said on Tuesday.
Under new rules announced in March, the CBOT resets daily limits for grains 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 on Sunday, Nov. 2, for the Nov. 3 trade date.
For corn, daily limit will move to 25 cents per bushel, from the current limit of 35 cents (all figures US$).
For soybeans, the daily limit will narrow to 70 cents per bushel, from the current limit of $1.
The limit for CBOT wheat will narrow to 35 cents, from the current 45 cents, and the limit for K.C. hard red winter wheat will narrow to 40 cents, from the current 50 cents.
For soymeal, the limit will narrow to $25 per short ton, from the current $30, and the limit for soyoil will tighten to 2.5 cents/lb., from the current three cents.
The limit on rough rice futures will decline to 90 cents per hundredweight, from $1.10. The limit for oats will remain at 25 cents per bushel.
The 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 May.
— Reporting for Reuters by Julie Ingwersen in Chicago.