The Kansas City Board of Trade has lowered its minimum margins for the hard red winter wheat futures contract.
“Earlier this year, the exchange increased margin levels in response to extraordinary market volatility,” said KCBT Chairman Jeff Voge. “Conversely, as volatility recedes, which has been the case of late, we are prudently acting to lower margins to levels that more appropriately reflect both exchange risk and margin financing requirements associated with commercial hedging activities. The latter is particularly important as we continue the Hard Red Winter wheat harvest and the crucial KCBT wheat futures hedging activities associated with such. However, should volatility return to the market, we would respond accordingly.”
The changes go into effect at the close of business today. They are as follows:
Hard Red Winter Wheat | Initial | Maintenance | ||
New Margin | Old Margin | New Margin | Old Margin | |
Speculative | $2500 | $3750 | $2000 | $3000 |
Hedge | $2000 | $3000 | $2000 | $3000 |
Omnibus Account | $2000 | $3000 | $2000 | $3000 |
Member For Own Account | $2000 | $3000 | $2000 | $3000 |