CME Group

Chicago's CME Group plans to open an exchange in London later this year. (Reuters / March 11, 2014)

CME Group Inc. said Tuesday it will implement a new system for setting daily price limits for U.S. grain and oilseed futures next month.

CME, which owns the Chicago Board of Trade and other exchanges, will apply limits to markets including corn, soybeans and wheat that reset twice a year based on underlying price levels, according to a notice from the exchange operator.

CME, the world's largest futures market operator, said it also will remove price limits for all grain and oilseed options.

Both changes are set to take effect on April 30 for the May 1 trade date and were approved by the U.S. Commodity Futures Trading Commission, according to the notice.

The overhaul for futures contract limits will allow higher price limits when market prices are high and lower price limits when market prices are low.

The reset dates will be the first trading day in May and the first day in November.

On May 1, the initial daily limit for corn will drop to 35 cents a bushel from 40 cents. The initial daily limit will rise to $1.00 from 70 cents for soybeans and drop to 45 cents a bushel from 60 cents for CBOT wheat, the notice said.

The markets currently have daily price limits that remain unchanged throughout the year. The company had sought feedback from market participants on the revised system.