Q1 2020 Cross-Commodity Recap

CME Group offers the widest range of global benchmark products across all major asset classes, enabling clients to trade futures, options, cash, OTC markets, optimize portfolios, analyze data and manage risk. The Cross-Commodity Recap includes the latest CME Group-Commodity product updates and news on Metals, Energy, and Agricultural markets – it is our curated look at these Commodity products, exclusively for you.

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Metals

  • Combined Metals futures and options Average Daily Volume (ADV) was 668,327 contracts in 2019, a new record. Metals F&O have now set annual volume records in 4 consecutive years. Average combined Metals Open Interest of 3,662,788 also set a record in 2019, showing consistent growth as volume increased.
  • Gold Futures Open Interest set a record on December 31 of 786,166 contracts.
  • Multiple individual products set ADV records during 2019, including Gold Futures, HRC Steel, and Gold and Silver Options.

Shanghai Gold futures contracts debut with deep liquidity and robust volume

  • Since their debut on October 14, a combined 42,719 contracts have traded in the SGU (USD Denominated) and SGC (CNH) contracts.
  • As the contracts are financially settled to Shanghai Gold Exchange’s spot benchmark price, the spread traded between SGU/SGC and GC has been closely tracking the original onshore/offshore differential.

More on SGE Gold

Communicate directly with aluminum market participants via CME Chat

  • Commodity Direct, a new messaging and market information tool available in CME Chat, provides market participants a clearer view of the aluminum price and volume throughout the trading day.   
  • The platform enables you to communicate directly with other Aluminum market participants along the supply chain.

More on Commodity Direct  


Energy

New LNG Freight futures on NYMEX

LNG FREIGHT FUTURES FREIGHT ROUTE PRODUCT CODE
LNG Freight Route BLNG1 (Baltic) Futures Gladstone to Tokyo R.V. BF1
LNG Freight Route BLNG2 (Baltic) Futures Sabine to UK Cont R.V. BF2
LNG Freight Route BLNG (Baltic) Futures Sabine to Tokyo R.V. BF3

Our expanding suite of Freight products include three new contracts, allowing LNG participants to effectively hedge LNG freight exposure across three routes: Sabine to Tokyo, Gladstone to Tokyo, and Sabine to UK.

The new LNG Freight futures traded over 50 lots across all three routes on launch day. The financially-settled LNG Freight futures offer increased flexibility in the LNG marketplace, added counterparty risk mitigation through CME Clearing, and margin offsets to key NYMEX Natural Gas contracts.

Hedge global shipping costs with LNG Freight futures on NYMEX. 

European Natural Gas options (TTF, NBP)

Check out our expanding suite of European Natural Gas options contracts and exercise and assignment prices at CME Group.

  • As the natural gas market heats up, access UK NBP and Dutch TTF Natural Gas options on NYMEX alongside LNG Japan Korea Marker options.

Energy product highlights

  • Record levels of extended trading hours volume across Energy products, including WTI Crude futures (CL) with 20.3% of total volume, WTI Crude options (LO) with 16.3%, NY USLD futures (HO) with 8.9%, RBOB Gasoline futures (RB) with 9.4%.

Agriculture

Volatility

Implied Volatility driven by seasonal production risks.

  • Corn has shown the widest range in implied volatility throughout the calendar year, the lowest point occurring in February and November.
  • Implied volatility historically peaks in June for Corn, Soybeans and Wheat.
  • On average Wheat shows the lowest 60 day implied volatility in November.

Black Sea futures and options

  • 2019 Black Sea Wheat and Corn futures and options volumes are up 25% on 2018, to 220,000 contracts (11 million tonnes of grain).
  • 15 calendar months available to trade with Black Sea Wheat futures and Options open interest out to new crop August 2020.
  • Over 80 participants from US, Europe, Middle East, Africa, Far East and Australia.

Commodities pricing, volatility & strategy tools

CME has a suite of free QuikStrike tools to calculate fair value prices and Greeks on CME Group Options, chart volatility and correlations, and test strategies in simulated markets.