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Butter Spot Call 
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Butter Spot Call contracts provide a way to:

  • Engage in daily buy and sell transactions resulting in physical delivery of 40,000-43,000 pounds of butter
  • Participate in an open cash market

Things to Know:

  • Butter Spot Call is a physically delivered product of 40,000-43,000 pounds of butter delivered to approved facilities in Chicago
  • Storable contracts create spreading opportunities between deliverable contract months
  • As the supply and demand for the cash product changes, the need arises for the butter industry to store product or take it out of storage.
    • This movement creates pricing relationship differences between the nearest contract month and the most distant ones