The CME has today announced what position limits to apply for their new EU wheat contract, if it goes on September 12 at the start.
The stock market tells that the State regulator, the commodity futures trading Commission (CFTC), a policy for speculative trading with physical prerequisites futures contracts issued.
Following position limits apply for the tradable on Sept. 12 for the first time EU wheat contract, the CME combined for speculators for futures and options:
In the spot month: 600 lots and for every months thereafter together 2,700 lots.
The supervisory authority calculates the limits based on the storage capacity of the Stock Exchange under contract. These are currently specified with 120,000 tons of storage room. A quarter of individual speculators may be prevented maximum. This is currently so 30,000 tons, which 600 contracts a ´ corresponds to 50 tons.
Cash market participants can free themselves hedgeprogram [at] cmegroup.com (hedgeprogram[at]cmegroup[dot]com) under this email address the trading limits, by classified as hedgers and submit an appropriate application.
