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CME busheling futures vols spike in April

May 02, 2019 | 10:29 AM | New York | Mei Ling Toh

Monthly trading volumes of CME Group's Midwest No1 busheling ferrous scrap futures hit a year-to-date peak in April, increasing more than threefold from the previous month.

A total of 2,480 lots - or 49,600 gross tons - traded last month, up significantly from the 579 lots sold in March and the highest monthly volume so far this year.

The CME's busheling futures logged daily activity at the end of the month, following a 423-lot sale on April 23. Buyers locked up 49 lots on April 24 and 271 lots on April 25, and another 4 lots and 2 lots sold on April 29 and April 30, respectively.

On Wednesday May 1, 56 lots set to expire in May-December sold at lower prices. Of those, 4 lots for May expiration traded down by $4 at $320 per ton, while 12 lots for June expiration traded down by $9 at $330 per ton.

Six lots each expiring in July and August settled at $336 per ton, down by $3 per ton and by $2 per ton, respectively, from the previous day. Six lots expiring in September sold down by $6 per ton at $331 per ton, and 15 lots expiring in October sold down by $5 at $328 per ton.

Six lots for November expiration and 1 lot for December expiration traded down $2 per ton at $325 per ton and $321 per ton, respectively.

Open interest for the CME busheling futures contract stood at 4,237 lots - or 84,740 gross tons - at the close on May 1.

CME's busheling futures is underpinned by Fastmarkets AMM's No1 busheling domestic Midwest index, which settled at $350.50 per gross ton in April, down from $372.32 per ton in March. The next settlement is scheduled for May 10.