No Change in Wheat Premium (Storage) Rates Triggered in December 2016

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). 

Please click here for PDF of SER-7810.