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

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- Corn
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- Soybean
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- Wheat (SRW)
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- Wheat (HRW)
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- Soybean Meal
- View Contract Specs

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- Soybean Oil
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- South American Soybean
- View Contract Specs

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.

Additional Resources

View all Education

- Archive: Advanced Hedging Workshop with David Hightower - June 23, 2014

- Short-Dated New Crop Options Fact Card

Contact Us

Steven Stasys
+1 312 648 3822

Susan Sutherland
+1 312 930 2325

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