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.
Chicago SRW Wheat-Corn Intercommodity Spread Options Listing Cycle:
CME Globex: ZCW
Open Outcry and Clearing: XCW
Chicago SRW Wheat-Corn Intercommodity Spread Rules (PDF)
Chicago SRW Wheat-Corn Intercommodity Spread Options Vendor Codes (PDF)
Chicago SRW Wheat-Corn Intercommodity Spread Options Contract Specifications
Wheat Inter-market spread options are based on spreads between Minneapolis Grain Exchange (MGEX) Hard Red Spring Wheat futures, Chicago Soft Red Winter (SRW) Wheat futures and KC Hard Red Winter (HRW) Wheat futures. Market participants spread these three futures contracts to capitalize on price differentials inherent between the different classes of wheat, primarily due to the varying levels of protein content. Listed on the CME Globex electronic trading system, Wheat Inter-market Spread options provide the unique ability to execute these spreads in a single trade. Implied functionality on CME Globex further enhances the opportunities these markets provide.
|Wheat Spread Option||CME Globex||Open Outcry and Clearing|
|KC HRW – Chicago SRW||KWC||KWC|
|MGEX – Chicago SRW||MCW||MCG|
|MGEX – KC HRW||MKW||MKW|
KC HRW – Chicago SRW Wheat Spread Options contract specifications (PDF)
MGEX – KC HRW Wheat Spread Options contract specifications (PDF)
MGEX – Chicago SRW Wheat Spread Options Contract Specifications (PDF)
Visit the Minneapolis Grain Exchange website
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.