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 2012 – December 2012 wheat calendar spread averaged 38.88% of financial full carry during the period of July 19, 2012 through August 24, 2012. Since this result is less than 50% of financial full carry, the maximum premium charge that a wheat regular delivery facility may charge holders of its outstanding shipping certificates will be lowered from 36.5/100s of one cent per bushel per day (approximately 11 cents per bushel per month) to 26.5/100s of one cent per bushel per day (approximately 8 cents per bushel per month) on September 18, 2012.
The next evaluation period will measure the December 2012 – March 2013 calendar spread relative to financial full carry during the period of September 19, 2012 to November 23, 2012 with the next possible adjustment to contract premium charges on December 18, 2012.
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