(Adds industry reaction)

CHICAGO, March 10 (Reuters) — Daily price limits for Chicago Board of Trade soybean, soyoil and corn contracts will be expanded March 28, CME Group CME.N said on Monday, a move that comes amid high volatility in the markets.

The daily price limits for CBOT corn futures will be raised to 30 cents per bushel from 20 cents, soybeans will increase to 70 cents from 50 cents per bushel and soyoil to 2.5 cents from 2.0 cents per lb.

The changes, subject to the approval of the Commodity Futures Trading Commission, come amid one of the most volatile trading seasons in the history of the CBOT, a division of the CME Group and the world’s top grain exchange.

Since the start of the year there have been several consecutive days of limit-up or limit-down moves in the CBOT markets, fueled by tightening world grain and oilseed stocks and increased speculative interest in commodities.

Once a futures contract makes a limit move and stays there, trading stops. At that point the only way to trade the market is via options, which creates synthetic futures positions.

The proposed limit increases were met with mixed opinions by those within the futures and grain industries.

With the higher markets, you need the extended ranges, said Roy Huckabay, a grains analyst with The Linn Group, a Chicago trade house. We’re trading them anyway with the synthetics, it just makes it more visible.

Others worried the increased price limits would only add to the volatility — making it more difficult for the grain industry, which hedges its corn, wheat and soybean inventories by selling futures to offset the risk of falling cash prices.

This price insurance is usually mandated by grain industry lenders as collateral for loans.

But futures prices rising to record highs since the start of the new year has created havoc among grain firms as their short futures positions are working against them. It was also making it increasingly difficult for country elevators to meet futures margin calls.

The bigger limits go against what really needs to happen for a hedger out here. I don’t think it’s a direction I’d like to see, said Don Roose, analyst with U.S. Commodities in West Des Moines, Iowa.

The National Grain and Feed Association, the largest U.S. grain industry group, has strongly opposed increasing CBOT price limits.

Given the pressure the cash grain market is under, the NGFA has encouraged and will continue to encourage the CME Group to hold the line on increasing daily limits, said Rodney Clark, chairman of the risk-management committee for the NGFA.

The last time CBOT price limits for corn, soybeans or soyoil were expanded was in 2000. Corn was trading then around $2 a bushel and soybeans were at $5 — less than half of today’s values.

However, CBOT wheat limits were increased in February, after five consecutive days of limit-up moves.

Additionally, daily price limits for wheat, corn, soybeans, soybean meal, soybean oil, oats and rough rice futures widen by 50 percent the following day when the price of two or more contracts within the first five to eight non-spot contracts, or the final contract month of a crop year, closes at limit bid or limit offer.

The CME Group also said CBOT grain options will begin trading electronically simultaneously with the pit-traded day session beginning April 14. (Editing by Walter Bagley )