On Tuesday, CME Group Inc. (CME) said in a notice that it will utilize a new system in May to set daily price limits for its U.S. grain and oilseed futures.?
This will include limits on its corn, soybeans and wheat markets that reset twice per year (the first trading days of May and November) as determined by underlying price levels, reported Reuters.?
In addition, price limits for options on grain and oilseed will be removed.?
By implementing the contract limit changes, it will enable higher price limits when there’s high market prices and lower price limits at times of lower market prices.?
The exchange has received U.S. Commodity Futures Trading Commission approval for this and the changes will go into effect on April 30 for the trade date of May 1.?
The changes will include corn to have a 35 cents a bushel?initial daily limit (down from 40 cents) while soybeans’ initial daily limit will jump to $1.00 (now 70 cents) and wheat will fall to 45 cents per bushel (now at 60 cents), according to CME’s notice.?