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Whether you are a hedge fund managing risk from 30 days to 30 years, CME Group Interest Rate markets offer the most diverse suite of futures, options, and cleared OTC products offered on any exchange. With more than 40 million contracts outstanding in open interest, our Interest Rate products deliver greater capital efficiencies, plus the proven safety and security of CME Clearing. Please explore our interactive Interest Rate tools and free educational resources.

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LEADING PRODUCTS
    AVERAGE DAILY VOLUME   OPEN INTEREST
Product Name (Futures Ticker) Options Ticker* ADV Contracts
Q1 2011		 Percent Change from Q1 2010 Percent of Contracts Traded Electronically Open Interest Contracts Q1 2011 Percent Change from Q1 2010
Corn Futures and Options (ZC)² OZC 453,352 69% 70% 3,570,677 37%
Soybeans Futures OZS 250,665 39% 74% 1,524,537 40%
Wheat Futures OZW 124,665 42% 83% 922,744 23%
Soybean Oil Futures OZL 111,683 45% 79% 650,228 34%
Live Cattle Futures LE 70,069 29% 69% 712,332 12%
Lean Hogs Futures HE 42,912 31% 73% 351,392 20%

* Tickers displayed are CME Globex product codes.
1. These contracts are listed with, and subject to, the rules and regulations of CME.
2. These contracts are listed with, and subject to, the rules and regulations of CBOT.

 

Q1 Highlight Weekly Grain Options — Available May 23, 2011

Weekly options on grain futures offer an expanded range of standardized, short-dated options on corn, soybeans and wheat. Complimenting the standard and the serial options, Weekly Grain Options (WGOs) offer flexibility in managing existing option positions, and create new opportunities to trade high impact economic events, such as changing weather forecasts and USDA reports.

 

Options For Trading Volatility

With the launch of Weekly Grain Options on May 23, 2011, hedge funds will have even more ways to take advantage of the volatility in the grain markets. In addition to Weekly Grain Options:

Calendar Spread Options (CSOs) allow you to trade on the volatility between nearby and deferred delivery months.

Wheat-Corn Intercommodity Spread Options provide a new alternative for trading the relationship between corn and wheat, which are closely linked by market fundamentals such as the supply and demand for feed and the impact of weather.

Soybean-Corn Price Ratio Options represent a new tool for trading on the price relationship between corn and soybeans, and the subsequent impact on new crop planted acreage.

Learn more about Weekly Grain Options at cmegroup.com/weeklyags, or Grain Spread Options at cmegroup.com/gso.

 

Volatility Drives Record First Quarter For Grain Contracts

Volatility around USDA reports, strong global demand, tight ending stocks, and early season weather issues were the catalysts behind increased ADV and volatility in grain futures. Q1 Corn, Soybean and Wheat ADV increased 69 percent, 39 percent and 42 percent, respectively, over Q1 2010.

 

Fundamental Drivers

Concerns about the United States' ability to produce enough corn and soybeans in 2011 to meet growing demand have underpinned the bullish market. Anticipation of how much acreage may shift this spring from crop to crop added to volatility. The March earthquake and tsunami in Japan created a short-term break, but in the end, added volatility. Even with normal yields, corn and soybeans ending stocks are projected at pipeline levels. Any shortfall in yields could lead to unprecedented demand rationing through price.

 

 

 

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CME Group Hedge Fund Team

Tina Lemieux
Managing Director, Client Development & Sales - Hedge Funds
312 930 3151
tina.lemieux@cmegroup.com

Mark Thompson
Director, Client Development & Sales - Hedge Funds (U.S.)
212 299 2342
mark.h.thompson@cmegroup.com

Randy Warsager
Director, Client Development & Sales - Hedge Funds (U.S.)
212 299 2352
randy.warsager@cmegroup.com

Pierre Prunier
Director, Client Development & Sales - Hedge Funds (Asia)
+65 6593 5582
pierre.prunier@cmegroup.com