The Variable Storage Rate (VSR) mechanism in Chicago Board of Trade (CBOT) SRW Wheat futures examines nearby calendar spreads to determine adjustments in contract premium (storage) charges. The July 2014 – September 2014 wheat calendar spread averaged 84.26 percent of financial full carry during the period of May 19, 2014 through June 20, 2014. Since this result is greater than 80% of financial full carry, the maximum premium charge that a wheat regular delivery facility may charge holders of its outstanding shipping certificates will be increased from 16.5/100s of one cent per bushel per day (approximately 5 cents per bushel per month) to 26.5/100s of one cent per bushel per day (approximately 8 cents per bushel per month) on July 18, 2014.
The next evaluation period will measure the September 2014 – December 2014 calendar spread relative to financial full carry during the period of July 21, 2014 to August 22, 2014 with the next possible adjustment to contract premium charges on September 18, 2014.
Questions may be directed to Fred Seamon in Research and Product Development (312-634-1587 or Fred.Seamon@CMEGroup.com).