The daily trading limit for corn futures on the Chicago Board of Trade will widen to 40 cents per bushel beginning on August 22, according to Commodity Futures Trading Commission.
David Lehman, managing director at CME Group Inc., said historically low levels of supply, growing demand and other factors have significantly increased corn futures prices and volatility. "We believe increasing daily price limits will result in less-frequent limit moves and will help ensure that our markets provide the most effective means for price discovery and risk management markets," said Lehman.
The raise, the first since March 2008, can be expanded to a maximum of 60 cents in the next trading session following a limit-up or limit-down close. The current 30-cent limit can be expanded to 45 cents, and then again to 70 cents, according to CME.
