May 8 CME Group Inc, parent of the
Chicago Board of Trade, changed initial margins for agricultural
commodity futures on Thursday.
The exchange operator lowered corn futures <0#C:> initial
margins for speculators by 14.3 percent to $2,025 per contract
CME raised soybean futures <0#S:> initial margins for
speculators by 20 percent to $4,050 per contract from $3,375.
The Chicago-based exchange operator reduced soybean oil
futures <0#BO:> old crop initial margins by 14.8 percent to
$1,553 per contract from $1,823.
It increased NYMEX coffee <0#KT:> margins by 50 percent to
$9,900 per contract from $6,600.
It also raised wheat futures <0#W:> initial margins for
speculators by 7.1 percent to $2,025 per contract from $1,890.
All the margin changes will be effective after the close of
business on Friday, May 9.
Margins are deposits paid by investors in futures markets,
where full payment is made when contracts mature, to an exchange
or clearing house to cover the risk of default by that investor
and typically are based on the largest most-likely daily market
Table showing list of contracts and initial margin changes
Product Current initial New Initial
CORN FUTURES (C) $2,363 $2,025
NYMEX COFFEE (KT) $6,600 $9,900
SOYBEAN FUTURES (S) $3,375 $4,050
SOYBEAN OIL FUTURES (07) $1,823 $1,553
WHEAT FUTURES (W) $1,890 $2,025
(Reporting by Anupam Chatterjee in Bangalore; Editing by Eric