Monday March 24, 09:14 PM
CME obtains higher price limits
CHICAGO (AP) - CME Group Inc. obtained approval to allow prices for certain grains and farm products to swing more widely before halting trading, the futures exchange said Monday.
With prices for products like corn and wheat gyrating
amid volatile markets, the company said it asked the Commodity Futures Trading Commission to approve higher price limits.
A price limit is the amount that a contract can rise or fall before trading must be halted. When markets are volatile, a price limit is more likely to be exceeded, and therefore the CTFC approved higher price limits to allow the market to absorb price swings.
Corn prices will now be permitted to swing 30 cents per bushel, compared with the previous limit of 20 cents per bushel. The limit on soybeans were raised to 70 cents per bushel from 50 cents per bushel, and the limit on soybean oil was hiked to 25 cents a pound from 20 cents a pound.
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