KANSAS CITY — Three amended rules governing the daily trading limits for Kansas City hard red winter wheat futures approved last month by CME Group, Chicago, will take effect with the start of trade on Aug. 29.

The rules concern price limits on mini-sized wheat, KC hard red winter wheat and mini-sized KC hard red winter wheat contracts for all non-spot months.

The first rule change regards the circumstances under which an initial price limits trigger expanded price limits. Current rules hold that expanded price limits are triggered when two or more of the first five non-spot contracts (or the last contract month in the crop year) settles at the initial price limit. Beginning with Aug. 29 trade, the expanded limits will be triggered when one of the first five non-spot contracts (or the last contract in a crop year) settle at the initial price limit.

The second upcoming rule amendment changes what activity will cause expanded price limits to remain in place for subsequent trading days. Under current guidelines, one or more contracts must settle at the expanded price limit for the expanded limit to remain in place for the following trading day. Beginning Aug. 29, the rule will be amended so that expanded price limits remain in effect for the next trading day when one or more contract months settles at or above the initial price limit.

The final rule change allows for temporary price limit increases and addresses when an expanded price limit becomes the initial price limit, and in that circumstance, what will become the new expanded price limit.  Beginning Aug. 29, if at least one of the first five non-spot contract months settles at the expanded price limit during two consecutive trading days, the expanded price limit will become the initial price limit beginning the following trading day and the expanded limit will be raised by 50%, rounded up to the nearest 5¢ per bu. These updated limits will then remain in place until all contract months settle at a price change less than the initial price limit. When that occurs, daily price limits the following trading day shall revert to the initial price limit.