WHEAT is not strange to all of us any more, but the way wheat market have grown up is still a mystery to some. Today, we will learn some knowledge about "The History of CBOT Wheat Trading".

1. CBOT Wheat History We all know about WHEAT , but the way wheat market have grown up is still a mystery to some of us. Today, we will learn some knowledge about

2. In the 17th century, wheat history in the Americas began when European emigrants brought wheat across the ocean to the new land. After that, everything went well. Once in the U.S, wheat production expanded, and grew into one of the largest cash crops grown domestically. Both production and consumption were growing fast. The means to accurately price the wheat was also disappearing.

3. The number of buyers and sellers needed a medium to trade their products meant the growth in market participation. To be successful, they needed to understand supply and demand fundamentals in order to facilitate accurate price discovery, but it wasn’t just that.

4. The lack of a proper medium of exchange was also inefficient for crop production. At first, farmers were not accurately aware of market demands. They did not know how much of a crop their peers were planting, and this lead to a number of shortages and supply gluts. In the end, wheat history and the evolution of the wheat futures market are results of these market inefficiencies.

5. The Chicago Board of Trade ( CBOT ) was founded in 1848. Talking about wheat history, it should not be skipped learning about CBOT.

6. All wheat traders know about it as the world's oldest futures and options exchange. Chicago has been known as the natural location for an exchange of agricultural goods. The Windy City is located in the center of the U.S. The Midwest grain producing regions allowing for market participants to get their product to market. To be the home for the first U.S. futures market exchange, Chicago also has another contributing factor: Chicago’s location is on Lake Michigan. This allowed for efficient transportation of commodities via the Great Lakes.

7. Back to the history, the corn contract was the first futures contract which was offered by the CBOT with several other grain futures contracts being formalized in 1865. In1870, the first iconic octagon shaped open outcry pits were introduced. Though the regulation of futures markets innovated and adapted to growing market needs, it would still be several years until the exchanges developed into their current forms.

8. Thanks to time, until 995, the first electronic platform, Project A, was implemented. Then, Project A was used to trade grain futures during hours that open outcry was not operating. And in 1998, electronic and open outcry became side by side platforms. From that time, you can see on the television with pit traders using their laptops hanging around their neck to trade the electronic and open outcry markets simultaneously.

9. The growth of the wheat futures market on the CBOT – now the Chicago Mercantile Exchange ( CME ) Group – and wheat history laid the foundation for other exchanges that trade wheat. * The Minneapolis Grain Exchange (MGEX). * The Kansas City Board of Trade (KCBOT) house and trade their flagship contracts: the hard red spring wheat and the hard red winter wheat respectively. Until now, the MGEX, KCBOT, and CBOT are the result of growth and innovation in the wheat futures markets.