In commodity market terminology, Wheat Swaps generally refer to Wheat Calendar Swaps which are negotiated contracts between buyers and sellers based on an exchange of Wheat futures contracts of different months. Wheat is a grain grass which originated in the Fertile Crescent area of the Near East, and is now cultivated worldwide. Wheat grain is a world staple food used in the making of bread flour, breakfast cereal, noodles, beer and other alcoholic products as well as biofuel.
Wheat Calendar Swaps trade on the Chicago Board of Trade and the Globex electronic trading platform. Wheat Swap Contracts are for 5,000 bushels of Wheat per leg and prices are quoted in U.S. Dollars with a minimum fluctuation of ¼ cent per bushel or $12.50 per contract.