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 from $2,363.
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 move.
Table showing list of contracts and initial margin changes for speculators: 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 Walsh)