Market News & Headlines >> Corn, Soy futures Price Limits Expanding
Daily price limits for Chicago Board of Trade corn, soybean, soymeal and soyoil futures will be expanding effective May 2, while wheat futures limits will be narrowed as part of a normal semi-annual adjustment, exchange operator CME Inc. announced on Monday.
The initial daily price limit for CBOT corn futures will rise to 50 cents per bushel from the current 35 cents, while the initial daily limit for soybean futures will expand to $1.15 per bushel from the current 90 cents. The initial daily limit for soymeal futures will expand to $30 per short ton from the current $25, while the initial daily limit for soyoil futures will rise to 5 cents per pound from the current 4 cents.
In the event that expanded price limits are triggered, the expanded daily limit for corn futures effective May 2 will be 75 cents per bushel up from the current level of 55 cents, while the expanded limit for soybean futures will be $1.75 per bushel, up from the current level of $1.35. The new expanded daily limit for soymeal futures is $45 per ton, while the new expanded limit for soyoil futures is 7.5 cents per pound.
The initial daily price limit for both CBOT Chicago SRW wheat futures and KC HRW wheat futures will contract as of May 2 to 70 cents per bushel from the current temporary level of 85 cents, which was adopted by the exchange in order to accommodate increased market volatility in the wake of Russia’s invasion of Ukraine. The expanded limit for wheat futures will go to $1.05 from the current level of $1.30.
Normally, CME Group resets daily limits for CBOT grains and oilseeds futures in May and November of each year under a variable price mechanism that it put in place in 2014. The policy allows price limits to increase when futures prices are high and contract when prices fall.