Can anybody explain me please what Premium charges in CBOT Rulebook are - https://www.cmegroup.com/content/dam/cmegroup/rulebook/CBOT/II/14/14.pdf (section 14108 Premium charges)? I am somehow missing the point.

Is it additional charge you need to pay extra when buying futures contract? Is it paid for whole time between two contracts - like it is described in the formula - mostly for 90 calendar days in grains?

Or it is not something which has to be paid and it is there only to see what financial full carry would be so we can check it compared to next future contract month´s price?

1 Answer 1


I believe this only applies to the physical delivery of these wheat futures.

If you don't physically deliver them, I don't think they apply at all.

Perhaps you are getting confused with margin.

  • Absolutely correct. The OP is missing the first sentence which clearly states "to be valid for delivery on futures contracts". Normally you do not deliver, you close. You only deliver if you are short and do not want to close out.
    – TomTom
    Jan 25, 2021 at 1:18

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