Introducing more ways to manage short-term exposure. The new product is an extension of Short-Dated New Crop options, with listing cycles occurring every Friday in February through August.
How you can benefit:
How they are designed:
A growing number of Asia-based clients are participating in our exchange-traded Agriculture markets, particularly our benchmark Soybean Meal, Soybean Oil, Corn, Soybean, and Wheat futures markets.
Commercial hedgers have expressed a preference to be able to manage price risk for these trade flows during the Asia trading day, but a lack of liquidity made doing so a challenge. The higher trading volumes and tighter traded markets in the Asia day has made greater participation possible from the region.
This has created consistent futures trading volumes during the Asia time zone at competitive bid/ask spreads rather than relying on the U.S. traded markets to execute traded volumes. This deepening in liquidity provides a platform for clients operating in Asia time zone to better manage price risk.
Source: CME Group
Calendar Spread options had the highest ADV ever in 2022, with over 2K trading a day and the highest average open interest of 72K contracts. With Corn and Soybeans trading at an inverse for most of 2022, market participants have traded Calendar Spread options in record fashion.
Calendar Spread Options offer alternative hedging capabilities compared to standard options, and can provide a more precise hedge against adverse movements in price spreads. They provide a better risk management device for hedgers and market participants exposed to calendar spread risks.
Source: CME Group
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.
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.
Pork has become the most consumed meat globally, according to the U.S. Meat Export Federation. Pork originating from U.S. hog producers is in demand from international buyers from Mexico to China. What's driving this demand?
Access our latest Ag-focused videos featured in Bloomberg Quicktakes.
Soybean Producers Offer Mixed Outlook for 2023
Grain Traders Shift Focus to South America
Global Grain Markets Brace for a Tightening
Three Factors Driving Market Grain Volatility
What's Driving the Volatility in Global Commodities?
Enhance your trading with these CME tools.