Short-Dated New Crop Options

Short-Dated New Crop Options

Take advantage of hedging flexibility with Short-Dated New Crop options on Corn, Soybeans, Soybean Meal and Oil, 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.

Short-dated New Crop Option Products

Contract Listings

Short-Dated New Crop Option Underlying Futures Short-Dated New Crop Option Contract Months
Corn December  January thru September.
Soybeans November  January 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.

Contact Us

Steven Stasys
+1 312 648 3822

Susan Sutherland
+1 312 930 2325


More in Agriculture