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CME Ups Soybean Price Limit to $1

04/23/2014 @ 10:15am

CME Group Inc. plans to change the way it sets one-day price limits in the trading of corn, soybean, and wheat futures, and to remove price limits for all grain and oilseed options, the company said Tuesday.

The new variable limits, which will apply to all grain, soybean, and soybean-related contracts on the Chicago Board of Trade, will be based on market prices and will be changed twice a year -- on May 1 and November 1.

The limit on May 1 will be determined using the average settlement price, over a 45-day period, of the July contract, according to the CME's notice. The limit on November 1 will be set using the average 45-day settlement price of the December contracts for most commodities, and the November contract for soybeans and rice.

The initial daily trading limit on corn starting May 1 will be 35 cents a bushel vs. the current 40 cents a bushel. The expanded price limit, which kicks in if prices reach the initial price limit the prior day, will be 55 cents a bushel.

The initial daily limit on soybeans will rise to $1 a bushel from 70 cents, the CME said. The expanded price limit will jump to $1.50 a bushel if the initial limit is reached.

The initial daily limit for CBOT wheat will drop to 45 cents from the current 60 cents.

The Commodity Futures Trading Commission approved the changes on April 18, the exchange said.


Write to Tony C. Dreibus at tony.dreibus@wsj.com
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