One can’t start trading the wheat futures market without first having a grasp on the basics of the contract specifications. It may seem simply, but you wouldn’t want to call your broker up and ask to buy a wheat contract for November delivery. Knowing the necessary aspects of the contracts traded on the wheat futures market inside and out will only assist your development. When this becomes second nature, it will be one less thing to think about; allowing for complete focus on the things affecting price movements.
Let’s start from the beginning. Here are the contract month codes:
| Month | Code |
| January | F |
| February | G |
| March | H |
| April | J |
| May | K |
| June | M |
| July | N |
| August | Q |
| September | U |
| October | V |
| November | X |
| December | Z |
The full code for a wheat futures contract is as follows: [[commodity code][year][month code][strike price (equal to zero for futures)]. An example of an electronic Chicago wheat future for delivery in December of 2009 is: ZW9Z.
The specifications for the contracts traded on the Chicago wheat futures market are:
| Wheat | |
| Symbol (OO, Elect.) | W, ZW |
| Contract Size | 5,000 bushels |
| Open Outcry Hours | 9:30 AM to 1:15 PM Mon.- Fri. |
| Electronic Hours | 9:30 AM to 1:15 PM and 6:00 PM to 6:00 AM Sun.- Fri. |
| Minimum Tick | $.0025 /bushel ($12.50 /contract) |
| Contract Months | H, K, N, U, Z |
| Daily Limit | 60 cents |
| Margin |
$3,375 |
| Options | Yes |
| Mini Wheat | |
| Symbol (OO, Elect.) | YW, XW |
| Contract Size | 1,000 bushels |
| Open Outcry Hours | 9:30 AM to 1:45 PM Mon.- Fri. |
| Electronic Hours | 9:30 AM to 1:45 PM and 6:00 PM to 6:00 AM Sun.- Fri. |
| Minimum Tick | $.00125 /bushel ($1.25 /contract) |
| Contract Months | H, K, N, U, Z |
| Daily Limit | 60 cents |
| Margin |
$675 |
| Options Available | No |
(All time are CST)
The mini futures contract is the only mini sized contract traded on U.S. wheat futures markets. There are some important differences to note between the two contracts.
- The commodity codes are different. Making sure you implement the right code can prevent an untimely and costly margin call.
- The mini open outcry and electronic trading hours for the day session are extended to 1:45. Make sure that you know the mini wheat futures markets doesn’t close at 1:15
- Tick values and minimum ticks are different. This will have a direct effect on the percent changes of your portfolio’s capital value. This is good to keep in mind when you are deciding what kind of risk-reward scenario you want to trade.
- Margin of the full sized wheat contract are five times that of the mini contract. Using the mini wheat futures market may be the difference between beginning your career and not.
Make sure you know these contract specifications and their directions in and out. If you are just starting out, or thinking about starting out as a trader of wheat futures markets, weigh these options with your goals in mind. Decide which one, or a combination of both that best suits you.
(CBOT: Education: Contract Specifications)
Trading in futures and options involves a substantial degree of a risk of loss and is not suitable for all investors. Past performance is not indicative of future results.
