The Variable Storage Rate (VSR) mechanism in Chicago Board of Trade (CBOT) SRW Wheat futures examines nearby calendar spreads to determine adjustments in maximum contract premium (storage) charges. The May 2016 – July 2016 wheat calendar spread averaged 60.37 percent of financial full carry during the period of March 21, 2016 through April 22, 2016. Since this result is between 50 percent and 80 percent of financial full carry, no change to the maximum Wheat premium charge is triggered. Thus, the maximum premium charge that a Wheat regular delivery facility may charge holders of its outstanding shipping certificates will not change from the current maximum charge of 16.5/100s of one cent per bushel per day (approximately 5 cents per bushel per month).
Questions may be directed to Fred Seamon in Research and Product Development (312-634-1587 or Fred.Seamon@CMEGroup.com).
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