Wheat Futures Contracts:
- Ticker Symbol: W
- Exchange: CBOT
- Trading Hours: 10:30 - 2:15 EST.
- Contract Size: 5,000 bushels
- Contract Months: Mar, May, Jul, Sep, Dec,
- Price Quote: price per bushel. Ex $5.75 per bushel
- Tick Size: ¼ cent/bu. ($12.50/contract)
- Last Trading Day: The business day prior to the
15th calendar day of the contract month
Wheat Fundamentals:
The primary uses for wheat are flour, brewing, gluten and livestock feed.
Kansas is the largest wheat producing state, followed by North Dakota and Oklahoma.
There are different varieties of wheat grown in the U.S.
Soft Red Winter Wheat - It is grown from the Southern Midwest down to Texas. These wheat futures trade at the CBOT.
Hard Red Winter Wheat - This is the largest of the US wheat crops. This wheat is planted in the winter and harvested in May. These wheat futures trade at the KCBOT.
Spring Wheat - is planted in the spring and harvested in the fall. These wheat futures trade at the MGE.
Wheat Reports: There are several reports from the USDA that are helpful in your research and trading of wheat futures and options.
- Prospective Plantings - The first main report at the beginning of the growing season, released around the end of March. It summarizes how much and which crops the farmers expect to plant for the upcoming season.
- Monthly Crop Production - Released around the 10th of each month. The report gives an updated estimate of supply and demand for wheat.
- Grain Stocks - Provides information on the current supply of wheat and other grains in the U.S. and the world.
Tips on Trading Wheat Futures and Options:
- Wheat futures have a seasonal tendency to move lower from January to May and move higher from August to the end of the year.
- Monthly crop reports are a big market mover. The reports are released from the USDA around the 10th of each month and analyze the supply and demand for grains.
- Avoid buying expensive options when the market is very volatile. Traders can bid prices to levels that may be sucker bets.
