Q2 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, and 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

CME Group launches 4GC: Gold (Enhanced Delivery) futures

In light of recent logistical developments in the gold market, COMEX introduced a physically-delivered gold contract with additional delivery and trading functionalities on April 6. This contract enables delivery of Kilo, 100-ounce, and 400-ounce bars in current COMEX-approved depositories for maximum flexibility. Our existing Gold (GC) futures and options contracts remain unchanged.

The new 4GC and benchmark GC contracts are not fungible, meaning that a position in GC cannot be exchanged into an equivalent position in 4GC. However, 4GC is enabled for inter-commodity spread trading against GC on CME Globex, enabling customers to trade 4GC against GC onscreen without execution risk on either leg of the trade.

View the 4GC homepage  

Expansion of CME Group Steel product suite

Two additional contracts will complement our existing US Midwest Domestic Hot-Rolled Coil Steel (CRU) futures contract, which represents the Western world’s most liquid flat-rolled steel contract, with more than 3.4M short tons traded on CME Group in 2019.

European Hot-Rolled Coil Steel (Argus) futures

US Midwest Domestic Steel Premium (CRU) futures

More on Steel products


Energy

Shift in the US domestic crude oil grades market

Cushing, Oklahoma is the physical delivery hub for WTI futures contracts, the global benchmark for crude oil. In an environment of global oversupply and lower demand for oil, WTI futures are a critical, centrally cleared risk management tool that ensures convergence between futures and cash markets.

This paper provides an overview of recent market conditions and the significance of Cushing as a trading hub, most notably its pipeline connectivity and storage logistics for WTI.

In this report we discuss:

  • The Cushing hub and its capacity
  • Why the interconnectivity between a diverse mix of operators is important
  • The price movements of the US domestic grades vs. WTI futures

Download the report  


Agriculture

Ag market liquidity

Customers rely on our futures and options markets to manage risk and identify opportunity, making the markets even more important during this unprecedented time. To help participants achieve their goals effectively, we offer several tools.

Use the CME Group Liquidity Tool to analyze current and historical bid-ask spreads, book depth, and cost-to-trade statistics for CME Group products across three distinct global time zones.

In March 2020, we experienced a shock to the market due to the spread of COVID-19. Looking at Soybean Oil futures using the CME Group Liquidity Tool, we can see that bid and offer book depth remained strong and bid/ask spreads widened slightly, but still remained less than two ticks apart during the regular trading day.

Block Cheese futures and options

Since launching on January 13, 2020, Block Cheese futures and options open interest has steadily increased by contract month: Open interest was quickly achieved throughout the curve, including in the December 2020 contract. Combined futures and options open interest surpassed 3,000 in late March, landing at 3,184 at quarter-end.

Turn ideas into action:

Archive

Around-the-clock support to navigate challenging markets

Global Command Center (GCC) is the market operations and customer service desk for electronic trading and handles inquiries, issues, and support requests from CME Globex and CME ClearPort customers 24 hours a day. 

Regional numbers:

US: +1 800 438 8616

EMEA: +44 20 7623 4747

APAC: +65 6532 5010

For general, non-urgent questions, please email GCC at gcc@cmegroup.com.

Email all clearing inquiries to Clearing Client Services at ccs@cmegroup.com.

If you have any questions relating to Energy products, please contact energy@cmegroup.com.


For more information, contact:

Will Patrick
London +44 20 3379 3721

Phil Hatzopoulos
Chicago
+1 312 930 3018

Tim Smith
Hong Kong
+852 2582 2236

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