The Variable Storage Rate (VSR) mechanism in The Board of Trade of the City of Chicago, Inc. (“CBOT”) SRW Wheat futures contract (CME Globex Code: ZW; Clearing and CME ClearPort Code: W; Rulebook Chapter: 14) examines nearby calendar spreads to determine adjustments in maximum contract premium (storage) charges. The December 2016 – March 2017 wheat calendar spread averaged 55.59 percent of financial full carry during the period of September 19, 2016 through November 25, 2016. Since this result is between 50% and 80% of financial full carry, 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 36.5/100s of one cent per bushel per day (approximately 11 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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