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Consecutive Wheat CSO 
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Wheat Calendar Spread Options (CSOs):

  • Offer a new way to manage the spread risk between calendar months
  • Are options on the price differential between two contract months, rather than on the underlying asset itself
  • Offer alternative hedging capabilities compared to standard options
  • Can provide a more precise hedge against adverse movements in price spreads in the grain and oilseed markets.
  • Are sensitive only to the value and volatility of the spread itself, rather than the price of the underlying commodity.
  • Are more efficient than combining options on 2 different months in an effort to replicate the spread
  • Provide a better risk management device for hedgers and market participants exposed to calendar spread risks.
  • Provide grain merchandisers and processors with an additional tool to manage risks related to grain storage and purchase requirements

 

Wheat CSOs Key Benefits:


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Customization
Precise hedges geared to your exposure to temporal risk

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Opportunities
Protection against adverse price moves along with access to favorable moves

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Choice of venue
Trading floor or CME Globex electronic platform

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Liquidity
Dedicated and active market makers on the trading floor and on CME Globex

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Security
Centralized clearing and guaranteed counterparty credit