The JFA is also interested in the U.S. plan to segregate wheat derived from biotechnology from that developed through more traditional breeding techniques. Japan does not want any biotech commodities currently because many of the country's businesses export products to Europe, where there is more concern among consumers. This visit by the JFA to the United States is an important element of the market servicing program of U.S. Wheat Associates, an organization of 19 state wheat commissions. The move will clear the way for the CBOT to start using the Eurex exchange computer based trading platforms later this month. Currently, price changes on wheat futures and options contracts are limited to twenty cents per bushel.
Trading is suspended for the rest of the day if the limit is hit.
Beginning August 27, the new limit will be thirty cents. Similar increases were approved for the CBOT's contracts that are based on other commodities. NAWG and other commodity and farm organizations had opposed the increase sighting fears that greater market fluctuation could lead to greater risk by producers and an unstable marketplace. It is anticipated that the other U.S. exchanges that trade commodity contracts will soon follow suit by seeking increased limits themselves. Brazil Buyers in Brazil indicate that they have been disappointed in the high prices and poor quality of the remaining Argentine wheat stock, and Brazil's late season frost has caused significant production losses.