Wheat Futures
What are wheat futures?
Wheat futures are one of the most widely traded agricultural commodity futures contracts and are one of the most widely planted crops in the U.S. Wheat has a multitude of different uses such as flour, livestock feed, adhesives, and coatings. While there are several different wheat futures contracts, Chicago Soft Red Winter (SRW) wheat is the most traded wheat contract in the U.S. Chicago SRW is the global industry standard wheat benchmark in the world. In recent years, CME Group has introduced mini wheat futures which are 1/5th the size of the standard wheat futures contract.
How to trade wheat futures
Wheat futures and E-mini wheat futures can be traded nearly 24 hours a day on the thinkorswim® trading platforms.
Wheat futures contract specifications
Considering trading wheat futures? Here are the wheat futures contract specifications.
| Exchange, Symbol | Chicago Board of Trade, Wheat, /ZW |
| Multiplier | 50 |
| Minimum Tick Size and Value | 0.25 = $12.50 |
| Settlement | Physical1 |
| Trading Hours | 8 pm ET to 8:45 am ET, Sunday – Friday and 9:30 am – 2:20 pm ET, Monday - Friday |
At Schwab, you also get access to advanced trading platforms and education, where you can take advantage of market research, real-time wheat futures quotes, and other specialized tools.
Why trade wheat futures?
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Traders can use grains futures contracts like wheat to hedge or diversify their portfolio using investments that have a low correlation with their financial assets.
Traders can also use wheat futures to speculate on the price of wheat, which can change based on a number of different factors, most notably fluctuations in crop output due to weather events. Wheat futures are influenced by demand due to consumer trends, demand for protein from livestock and thus, wheat for feed, changes in government subsidy or tax policies, and the value of the U.S. dollar. Options on wheat futures are also available.
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It is important to understand the benefits and risks involved with wheat futures before placing a futures trade. With wheat futures you can trade outside of the traditional market hours associated with equities and take advantage of potential trading opportunities regardless of market direction. Wheat futures also provide the ability to trade with greater leverage and can allow a more efficient use of trading capital. However, trading leveraged products like wheat futures is not suitable for all investors. It involves risks that greater losses can occur with smaller market movements, and more than your initial investment can be lost.
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Futures trading at Schwab
Take advantage of specialized education, platform, and support.
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