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 December 2015 – March 2016 wheat calendar spread averaged 29.13 percent of financial full carry during the period of September 21, 2015 through November 20, 2015. Although this result is below 50 percent of financial full carry and would normally trigger a reduction in maximum Wheat premium charges, the current premium charge is already at the minimum allowed by the mechanism. 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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