Micro Ag futures product overview
What are Micro Ag futures?
Micro Agricultural futures, or Micro Ag futures, are an innovative suite of contracts designed to help active traders and agricultural producers manage their exposure in key agricultural commodities. These contracts have the potential to significantly transform the way smaller traders engage in the agricultural futures market.
Micro Ag futures are launching on the CBOT exchange for Corn, Wheat, Soybeans, Soybean Meal and Soybean Oil. These contracts are smaller in size, making them ideal for traders who want a more flexible entry point into agricultural futures. Specifically:
- Micro Corn, Soybean and Wheat contracts are 500 bushels.
- Micro Soybean Oil is 6,000 pounds.
- Micro Soybean Meal is 10 short tons.
Understanding Micro Ag futures
Unlike full-sized Agricultural contracts, Micro Ag futures contracts are financially settled. This removes the complexities associated with physical delivery, providing flexibility for traders. Cash settlement allows more entities to participate late into a contract's life, enhancing strategic flexibility.
Trading hours for Micro Ag futures match those of standard Agricultural contracts, available on CME Globex and CME ClearPort. The contracts may be instrumental for hedging against volatility factors, such as the monthly USDA WASDE report or extreme heat.
Summary
Micro Ag futures offer precisely scaled exposure, making them a natural fit for both active traders and agricultural producers. These contracts are designed to:
- Provide a more flexible entry point for traders
- Offer a way to precisely scale agricultural exposure
- Enable cash settlement, removing physical delivery barriers
To learn more about Micro Ag futures, visit cmegroup.com/MicroAgs or contact your preferred broker.