If you are interested in trading CBOT Wheat futures it is helpful to become familiar
with the history of the CBOT Wheat market. The CBOT Wheat Contract is the global benchmark for the pricing of soft-red winter
wheat. 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 temperature levels.
Soft-red winter wheat accounts for approximately 20% of U.S. wheat production. The flour from
Soft Red Winter Wheat is used to make cakes, cookies, snack foods, crackers and pastries. A large set of commercial market
participants, including wheat producers, exporters, millers and bakers. The diverse set of institutional participants
underscores the importance of wheat futures and options markets ensuring highly efficient pricing and continuous liquidity.