Grain Spread Options
Calendar Spread Options
Managing the Spread Risk Between Calendar Months

Calendar Spread Options are options on the price differential between 2 contract months, rather than on the underlying asset itself. Therefore, they offer alternative hedging capabilities compared to standard options, and can provide a more precise hedge against adverse movements in price spreads in the grain and oilseed markets.

Calendar Spread Options are sensitive to the value and volatility of the spread itself, rather than the price of the underlying commodity. They are more efficient than combining options on 2 different months in an effort to replicate the spread, and provide a better risk management device for hedgers and market participants exposed to calendar spread risks.  

  • Chicago SRW Wheat Calendar Spread Options
  • Corn Calendar Spread Options
  • KC HRW Wheat
  • Soybean Calendar Spread Options
  • Soybean Meal Calendar Spread Options
  • Soybean Oil Calendar Spread Options

Listing Cycles:

Corn
Consecutive*
Mar-July
Mar-Dec
July-Dec**
Dec-July
Dec-Dec (1 year)
Chicago SRW Wheat
Consecutive*
Mar-July
Dec-July**
July-Dec**
July-July (1 year)
Dec-Dec (1 year)
KC HRW Wheat
Consecutive*
Mar-July
Dec-July**
July-Dec**
July-July (1 year)
Dec-Dec (1 year)
Soybean
Consecutive*
Jan-May
Mar-July
Mar-Nov
May-Nov
July-Nov**
Aug-Nov
Nov-Mar
Nov-July
July-July (1year)
Nov-Nov (1year)
Jan-Mar (different calendar years)
Soybean Oil
Consecutive*
Dec-July
July-Dec**
Aug-Dec
Sep-Dec
Soybean Meal
Consecutive*
Dec-July
July-Dec**
Aug-Dec
Sep-Dec

*Formerly named "Nearby". A consecutive spread is a spread between the two closest maturity months.
**Formerly named "Old Crop / New Crop"


The consecutive futures calendar spreads and the longer dated spreads will be listed at all times. When the existing longer dated spreads expire the corresponding longer dated spreads for the following year will be listed.

 

Resources
Webinar Archive: Grain Spread Options and Volatility—Accessing Unique Trading Opportunities
Grain and Oilseed Calendar Spread Options Fact Card (PDF)
CSO Symbols and Strike Increments
Introduction to Calendar Spread Options
Benefits and Examples



Grain and Oilseed CSOs offer:

Customization
Precise hedges geared to your exposure to temporal risk
Opportunities
Protection against adverse price moves along with access to favorable moves
Choice of venue
Trading floor or CME Globex electronic platform
Liquidity
Dedicated and active market makers on the trading floor and on CME Globex
Security
Centralized clearing and guaranteed counterparty credit

 

Soybean-Corn Price Ratio Options

Soybean-Corn Price Ratio options provide market participants a tool for trading on the price relationship between corn and soybeans, and the subsequent impact on new crop planted acreage. Soybean-Corn Price Ratio options are cash-settled and traded via open outcry on the Chicago trading floor.


See Soybean Corn Price Ratio Options contract specifications
Soybean-Corn Price Ratio Options Fact Card
Soybean-Corn Price Ratio Option Quotes

 

SOYBEAN-CORN PRICE RATIO OPTIONS INITIAL CONTRACT EXPIRATIONS
Option Month Jan Mar May Jun Jul Aug Sep Oct Nov
Underlying Corn Mar Mar May Dec Jul Dec Sep Dec Dec
Underlying Soybean Mar Mar May Nov Jul Nov Sep Nov Nov

 

Chicago SRW Wheat-Corn Spread Options


Chicago SRW Wheat-Corn Intercommodity Spread options provide market participants with a alternative for trading the relationship between corn and wheat, which are closely linked by market fundamentals such as available planting acreage, demand for feed and the impact of weather.

Spreading Chicago SRW Wheat and Corn futures allow market participants to trade the relationship between the shifting product profitability and production of corn and wheat. Listing these spreads as options provides the ability to manage risk at a fixed cost.


Wheat-Corn Intercommodity Spread Options Listing Cycle:

  • March Wheat-March Corn
  • May Wheat-May Corn
  • July Wheat-July Corn
  • September Wheat-September Corn
  • December Wheat-December Corn

Ticker Symbols:
CME Globex: ZCW
Open Outcry and Clearing: XCW

Resources
Wheat-Corn Intercommodity Spread Rules (PDF)
Wheat-Corn Intercommodity Spread Options Vendor Codes (PDF)
Wheat-Corn Intercommodity Spread Options Contract Specifications


For more information, please contact:

 

Chicago Office
Susan Sutherland
Senior Director
Agricultural Products
+1 312 930 2325
susan.sutherland@cmegroup.com
London Office
Jeffry Kuijpers
Executive Director
Commodity/Alt. Investment Products
+44 20 3379 3729
jeffry.kuijpers@cmegroup.com
Chicago Office
Brenda Tucker
Executive Director
Commercial Sales
+1 312 454 8304
brenda.tucker@cmegroup.com
Singapore Office
Nelson Low
Executive Director
Commodity Products Asia
+11 656 550 9621
nelson.low@cmegroup.com

 

Futures & Options Trading

As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. CME Group exchanges offer the widest range of global benchmark products across all major asset classes, including futures and options based on interest rates, equity indexes, foreign exchange, energy, agricultural commodities, metals, weather and real estate. CME Group brings buyers and sellers together through the CME Globex electronic trading platform and trading facilities in New York and Chicago. CME Group also operates CME Clearing, one of the largest central counterparty clearing services in the world, which provides clearing and settlement services for exchange-traded contracts, as well as for over-the-counter derivatives transactions through CME ClearPort.

Idea Exchange

Idea Exchange is your direct link to the product managers, marketers, and the development teams who create cmegroup.com and will allow you to review functionality, participate in focus and provide feedback on upcoming Web initiatives

Idea Exchange - Join Our User Focus Program

Contact Us

CME Group/Chicago HQ:
Local: +1 312 930 1000
Toll Free: +1 866 716 7274

Global Customer Contacts

More CME Group Direct Lines
Phone list by department

Global Partnerships

Global

Global Offices Contact Information

 
Calgary Houston Chicago New York Washington São Paulo Belfast London Singapore Hong Kong Seoul Tokyo Beijing

© 2014 CME Group Inc. All rights reserved.

CME Group is the world's leading and most diverse derivatives marketplace. The company is comprised of four Designated Contract Markets (DCMs). Further information on each exchange's rules and product listings can be found by clicking on the links to CME, CBOT, NYMEX, and COMEX.