January Agricultural Options Update

Ag Option Product Suite

Monthly Highlights

  • March Corn exhibited a 17.5 cent trading range throughout January, with implied volatility staying at muted levels.
  • March Soybean Oil futures dropped over 15% with market participants ramping up option activity, specifically during non-US hours with 10% of option volume occurring before the US open
  • Wheat options showed strong activity as Chicago Wheat hit a new five-year high on January 22, and the KC-Chicago spread tested lows.
  • Feb Lean Hogs fell 18% in January, with implied volatility ranging from 32% to 42%.
Option Product Jan ADV Year/Year % Change
Corn 73,681 18%
Soybean 53,242 15%
Chicago SRW Wheat 28,554 6%
Hogs 18,543 54%
Soybean Oil 12,946 137%
Live Cattle 10,540 35%
Soybean Meal 8,644 12%
Ag Weekly Option 5,470 -8%
KC HRW Wheat 5,223 76%
Short-Dated New Crop Option 2,609 16%
Class III Milk 1,823 -18%
Feeder Cattle 1,381 12%
Calendar Spread Option 750 107%

March Corn trading in a 17.5 cent range in January with implied volatility trading between 14% and 18%. Historical volatility hits 22% in January

Soybean Oil – Historical Volatility vs. Implied Volatility

April Lean Hog Futures and Implied Volatility

Contact Information

Steven A Stasys
Senior Director, Agricultural Options

About CME Group

As the world's leading and most diverse derivatives marketplace, CME Group is where the world comes to manage risk. Comprised of four exchanges - CME, CBOT, NYMEX and COMEX - we offer the widest range of global benchmark products across all major asset classes, helping businesses everywhere mitigate the myriad of risks they face in today's uncertain global economy.

Follow us for global economic and financial news.

CME Group on Twitter

CME Group on Facebook

CME Group on LinkedIn

Agricultural Options Update

View an update of Agricultural Options, including volatility curves, recent volume, options spreads, and more.

View Now