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Most wheat contracts are traded on CBOT (Chicago Board of Trade), KCBOT (Kansas City Board of Trade), and MGE (Minneapolis Grain Exchange) The typical contract is for 5,000 bushels of Soft Red winter wheat. Future prices are quoted in cents per bushel, with 1/4 cent being the minimum price change. Other types of wheat traded include Hard Red winter, Hard Red spring, and Durum.
The price of wheat is heavily controlled by worldwide weather conditions. Since wheat is a common food in almost every part of the world, there is very steady demand for the crop. Therefore, most of the price fluctuation will come from the supply side and most of the
supply-side fluctuation will be affected by weather, especially in the growing regions of Russia, China, and the US.
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