Cost-Effective Tools for Trading New Crop Markets
Short-Dated New Crop (SDNC) options provide liquid, shorter term alternatives based on new crop Corn, Soybeans, Soybean Meal and Oil, Chicago Soft Red Winter (SRW) Wheat and KC Hard Red Winter (HRW) Wheat futures. The key difference between SDNC options and standard options is that SDNC options expire at various points throughout the growing season – earlier than the standard new crop options – but are tied to a longer-dated new crop futures contract.
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.
