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