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CBOT Sets Volume, Open Interest Records

posted on December 1, 2006


The pork industry took a double whammy this week. First, economists predicted producers had better enjoy the upside in the hog market while they can because high feed costs could deflate profits over the next two years. Second, up to four Midwest pork plants were affected by the winter storm that swept across the nation's Heartland this week. Heavy, drifting snow cut operating capacity at an Illinois plant by 50 percent. Analysts predict Friday's slaughter will be reduced by up to 20,000 head.

The snowstorm hit Chicago, too, but failed to slow trading in the commodities pits, which at one point this week hit an all-time high.

CBOT Sets Volume, Open Interest Records For those unaccustomed to the clamor of its frenzied buyers and sellers, the Chicago Board of Trade -- or CBOT -- might appear to be little more than chaos. That sentiment likely was reinforced this week, as the 158-year-old exchange set new volume and open interest records.

According to CBOT, daily volume exceeded 7 million contracts on Tuesday, surpassing the previous record established last summer. The trades were conducted via the traditional open outcry system, but CBOT officials noted the exchange also recorded a new daily volume record of more than 6 million contracts on the electronically traded "e-CBOT' system.

New open interest records also were tallied for several financial instruments, and a record 407,000 soybean contracts were active when the market closed on Monday. Open interest represents the number of trading positions that have not been offset and closed by the end of a trading day.

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