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 September 2014 – December 2014 wheat calendar spread averaged 66.46 percent of financial full carry during the period of July 21, 2014 through August 22, 2014. Since this result is greater than 50 percent but less than 80 percent of financial full carry, the maximum premium charge that Wheat regular delivery facilities may charge holders of their outstanding shipping certificates will not change from the current maximum charge of 26.5/100s of one cent per bushel per day (approximately 8 cents per bushel per month).
The next evaluation period will measure the December 2014 – March 2015 calendar spread relative to financial full carry during the period of September 19, 2014 to November 21, 2014 with the next possible adjustment to contract premium charges on December 18, 2014.
Questions may be directed to Fred Seamon in Research and Product Development (312-634-1587 or Fred.Seamon@CMEGroup.com).