The Variable Storage Rate (VSR) mechanism in The Board of Trade of the City of Chicago, Inc. (“CBOT”) SRW Wheat futures examines nearby calendar spreads to determine adjustments in maximum contract premium (storage) charges. The July 2016 – September 2016 wheat calendar spread averaged 92.51 percent of financial full carry during the period of May 19, 2016 through June 24, 2016. 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, 2016.
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-7690.