The Variable Storage Rate (VSR) mechanism in Chicago Board of Trade (CBOT) Wheat futures examines nearby calendar spreads to determine adjustments in contract premium (storage) charges. The September 2013 – December 2013 wheat calendar spread averaged 65.07 percent of financial full carry during the period of July 19, 2013 through August 23, 2013. Since this result is between 50 percent and 80 percent 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 16.5/100s of one cent per bushel per day (approximately 5 cents per bushel per month).
The next evaluation period will measure the December 2013 – March 2014 calendar spread relative to financial full carry during the period of September 19, 2013 to November 22, 2013 with the next possible adjustment to contract premium charges on December 18, 2013
Questions may be directed to Fred Seamon in Research and Product Development (312-634-1587 or Fred.Seamon@CMEGroup.com).