If you are interested in trading KCBT Wheat futures it is helpful to become familiar
with the history of the KCBT Wheat market. Wheat is traded on three different exchange. On the Chicago Board of Trade (CBOT)
soft-red winter wheat is traded. On the Kansas City Board of Trade (KCBT) hard-red winter wheat is traded. On the Minneapolis
Grain Exchange (MGE) hard-red spring wheat is traded.
The Kansas City Board
of Trade was established over 120 years ago near one of the most fertile growing regions in the world. The Kansas
City Board of Trade is the world's primary market for hard red winter wheat. Prices discovered is the trading pit serve as
the benchmark for wheat prices around the world. The size of the wheat contract translates into a relatively small underlying
value per contract, making it attractive for hedgers and speculators alike, providing easy market access for global participants
small and large.
Wheat is grown on more land area worldwide than any other
crop and is a close third to rice and corn in total world production. Wheat is well adapted to harsh environments and is mostly
grown on wind swept areas that are too dry and too cold for the more tropically inclined rice and corn, which do best at intermediate
A large set of commercial market participants, including
farmers, exporters, bakers and millers rely on the pricing mechanism of the the KCBOT. The diverse set of institutional
participants underscores the importance of hard-red wheat futures and options markets ensuring highly efficient pricing and