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.
Copyright 2008 Associated Press. All rights reserved. This material may not be
published, broadcast, rewritten, or redistributed.
|