JANUARY 2023 highlights
- New Crop Weekly options are now listed with trades occurring in both corn and soybean contracts. Week 2 options will expire February 10, two days after the Feb WASDE release.
- Soybean Meal options had the highest ADV in January with 16K contracts trading per day. Soybean Meal Weekly options contributed to that activity by establishing a new all-time ADV record of 650 contracts.
- Feeder Cattle options had the second highest ADV with 2,525 contracts trading as a cycle of herd culling occurs.
|
Option Product |
JANUARY ADV |
Year/Year % Change |
|---|---|---|
|
Corn |
81,140 |
-15% |
|
Soybean |
54,085 |
-35% |
|
Chicago SRW Wheat |
20,062 |
-37% |
|
Soybean MEAL |
15,316 |
10% |
|
HOGS |
13,140 |
16% |
|
LIVE CATTLE |
10,515 |
21% |
|
SOYBEAN OIL |
9,060 |
-30% |
|
AG WEEKLY OPTION |
6,816 |
-32% |
|
SHORT-DATED NEW CROP OPTION |
3,349 |
-12% |
|
FEEDER CATTLE |
2,525 |
77% |
|
KC HRW WHEAT |
2,443 |
-57% |
|
CALENDAR SPREAD OPTION |
2,186 |
-17% |
Short Term Option ADV
|
WEEKLY OPTIONS |
SHORT-DATED NEW CROP |
|
|---|---|---|
|
Corn |
3,406 |
2,858 |
|
Soybean |
1,722 |
491 |
|
Chicago SRW Wheat |
1,025 |
|
|
Soybean MEAL |
650 |
|
|
SOYBEAN OIL |
12 |
|
Soybean Meal Options - At the end of November, soybean meal price and volatility had a significant move up. In January, implied volatility measured by CVOL (SMVL) decreased from 30 to 26 as future prices stayed constant. Soybean Meal Weekly options set an all-time ADV record with 60% of the volume occurring as an outright.
Feeder Cattle options - Feeder cattle volatility has been trending down since June, trading around 10% in January as market participants ramp up option activity.
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
