Take advantage of hedging flexibility with Short-Dated New Crop options on Corn, Soybeans, Soybean Meal, Soybean Oil, South American and Wheat futures.
- Lower premiums than standard new crop options due to reduced time value
- Cost-effective way to take a position in new crop futures contracts
- Hedge a lower cost “window” version of traditional minimum price contracts
- Precision timing to trade high impact events on new crop markets, such as USDA reports
- Manage risk during specific windows of the growing season at reduced costs
Soybean Futures Price
Example: In early June, a producer buys a slightly out-of-the-money put option on new crop futures to hedge against lower new crop price.
- In the past, the producer had only one choice: Nov standard put with 1200 strike, premium of 49.1 and 145 days to expiration.
- Instead, the producer chose a Sep SDNC option with 1200 strike, premium of 34.1 and 82 days to expiration.
- Result: The producer saved 31% on the initial premium, was fully hedged against sharply falling new crop prices, and the SDNC option settled 1 1/2 cents off of the standard option at expiration.
-
-
Wheat (SRW)
- View Contract Specs
-
-
-
Wheat (HRW)
- View Contract Specs
-
-
-
Soybean Meal
- View Contract Specs
-
-
-
Soybean Oil
- View Contract Specs
-
-
-
South American Soybean
- View Contract Specs
-
Short-Dated New Crop Option |
Underlying Futures |
Short-Dated New Crop Option Contract Months |
|---|---|---|
Corn |
December |
October thru September. |
Soybeans |
November |
October thru September. |
South American Soybeans |
May |
July, September, November, January, March. |
Chicago SRW Wheat |
July |
December, March, May. |
KC HRW Wheat |
July |
December, March, May. |
Soybean Meal |
December |
January, March, May, July, September, October. |
Soybean Oil |
December |
January, March, May, July, September, October. |
Additional Resources
View all Education
Steven Stasys
+1 312 648 3822
Susan Sutherland
+1 312 930 2325
© 2020 CME Group Inc. All rights reserved.