Q2 2020 Ag Update

  • 21 Apr 2020
  • By CME Group

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.

Pricing, Volatility and Strategy Tools

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

Explore Options Strategy Tools

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.

Whitepaper Part 1: Options Strategies in Grain

Across the grain complex, options strategies are heavily utilized by both hedgers and liquidity providers using a multitude of approaches. Options can provide cost-effective, directional coverage and allow for flexibility. The proliferation of options strategies has grown steadily, accounting for just over 50% of all grain options volume executed at CME Group.

Follow Us!

Stay on top of all ag-related news by following the new CME Group Agriculture Showcase Page on LinkedIn: https://www.linkedin.com/showcase/cme-group-agriculture

Q1 2020 volume recap

    Q1 ADV
Total Ags Fut 1.3M
Opt 235K
Grain & Oilseed Fut 1.1M
Opt 197K
Livestock Fut 161K
Opt 33K
Dairy Fut 4K
Opt 4K

Options update

The trend of increased activity during non-US hours continues with Chicago Wheat, Soybeans and Soybean Oil reaching new market share highs.

Receive the latest stats and/or trends occurring in the Corn and Soybean markets through Ag Intel. This new data-driven alert will provide you with the latest product updates on a daily basis.

Learn more about Ag Intel

Black Sea Futures and Options

Q1 Black Sea Wheat and Corn futures and options volumes reached 68K contracts (ADV 1.1K), up 35% over Q4 2019.

Q1 Black Sea Wheat futures traded 58K contracts (ADV 935), a 75% increase over Q4 2019.

At quarter-end, Black Sea Wheat open interest exceeded 25K, mostly in new crop out to December 2020.

Explore Black Sea products

Hedging with Ag futures and options: self-study guides

The self-study guides to hedging with Agricultural futures and options are an introduction to the mechanics of using futures and options to forward-price Agricultural products.

Learn more about Grain and Oilseed products

Learn more about Livestock products