Q3 2022 Ag Update

  • 29 Jul 2022
  • By CME Group

Quarterly overview

The first half of 2022 has been a volatile one for wheat. On top of tight global supplies, the war in Ukraine has driven wheat prices higher and pushed disrupted trade flows into the spotlight. With 26% of world wheat exports that come out of the Black Sea virtually shut off, markets are trying to adapt.

CME Group's geographically diverse portfolio of wheat contracts, including North American, Black Sea, and Australian origins, allow customers to respond to shifting trade flows while capturing the benefits of trading on one exchange. 

To expand this portfolio, we launched Canadian Wheat futures, the only futures contract representing the globally vital FOB Vancouver export market for hard wheat. Our global wheat portfolio is one way to confront current economic driven supply disruptions. 

Learn more about the benchmark Wheat products here.

Source: CME Group

New product launches

Lumber futures and options, launching August 8*, are 1/4 the size of a truck rather than a rail car contract size designed to offer a more precise hedge and a more accessible tool to manage lumber price risk. It will be physically delivered to the Chicago Switching District, allowing for wider market participation. 

*Pending regulatory review

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Follow Us!

Stay on top of all ag-related news by following the CME Group Agriculture Showcase page on LinkedIn or by following CME Group on Twitter. 

LinkedIn: https://www.linkedin.com/showcase/cme-group-agriculture

Twitter: https://twitter.com/CMEGroup

View the current version and an archive of the Ag Update online at cmegroup.com/education/ag-update.html

Data as of July 29, 2022 unless otherwise specified.

Record trading for options

Short-Dated New Crop options reached 330K contracts in open interest, the highest level since 2015. 79K contracts were traded on June 23, the largest trading day since 2016.

Corn options reached the third highest level of open interest since they started 37 years ago with 2.4M contracts outstanding.

Excell with Options Read a special monthly report by Rich Excell on the latest trends in Ag options.

Livestock futures

  • Live cattle futures have increased in price over the last two years as volatility and call skew has increased.
  • Spread trading has been the majority of option volume for the last three months, with verticals and three-ways being the most popular strategies. 

Learn more about Livestock futures

Media and research

Events and webinars

APAC Agri Week: CME Group will be attending one of the largest APAC-based events for agriculture.

Lumber webinars: Register for the Lumber futures webinar series.

Spread Trading webinars: Trading techniques on inter-commodity grain spreads, livestock, and dairy.

Sign up for the PREBT Report for analysis on global products including Corn, Wheat, Soybean, and Palm Oil.