CHICAGO, March 9,
2023 /PRNewswire/ -- CME Group, the world's
leading derivatives marketplace, today announced that open interest
in New Crop Weekly Options has surpassed 500 contracts, while a
total of 984 contracts across 28 unique account numbers have traded
since launching on January 23. New
Crop Weekly Options build on the success of Short-Dated New Crop
Options, which launched a decade ago and achieved record average
daily volume (ADV) of 11,000 contracts in 2022.
"Market participants are increasingly using options to tailor
their risk management strategies around specific milestones in the
crop season," said Tim Andriesen,
Managing Director of Agricultural Products at CME Group. "Options
premiums tend to be higher when prices are volatile, which is also
when investors need protection the most. New Crop Weekly options
combine attributes of Short-Dated and Weekly options, offering new
crop exposure at an even shorter duration, helping to reduce costs
and enhance flexibility for market users."
"We have witnessed the growing popularity of short-dated options
across agricultural markets, as well as other markets like
equities, as investors look for more ways to protect against
short-term event risk," said Jack
Hainline, Risk Management Advisor at Advance Trading Inc.
"New Crop Weekly options give the producer even more flexibility to
manage their risk during a specific time period, whether that be
crop insurance, a government report, or to line up with their flex
rent lease."
"We are pleased that the CME Group has introduced New Crop
Weekly options," said Matt Garmon,
Head of Trading at Greenfield Commodities, LLC. "This product will
make it easier for stakeholders to be decisive about managing
short-term price risk by reducing the cost of options on new crop
contracts."
Volatility is historically lower for the new crop compared to
the old crop, especially earlier in the calendar year. New Crop
Weekly options allow market participants to manage their exposure
at specific time frames throughout the crop season, like the
release of USDA WASDE reports, with less time value built into the
price.
CME Group is also reporting records in other Weekly agricultural
options products, including record open interest of 1,456 contracts
in Soybean Oil Weekly options on March
2, and record ADV of 168 contracts in February. Soybean Meal
Weekly options also hit record ADV in January of 650 contracts,
with an average daily open interest of 1,702 contracts.
New Crop Weekly options on December Corn and November Soybean
futures expire Fridays from February through August. New Crop
Weekly options are listed by and subject to the rules of CBOT. For
more information, please visit here.
About CME Group
As the world's leading derivatives
marketplace, CME Group (www.cmegroup.com) enables clients to trade
futures, options, cash and OTC markets, optimize portfolios, and
analyze data – empowering market participants worldwide to
efficiently manage risk and capture opportunities. CME Group
exchanges offer the widest range of global benchmark products
across all major asset classes based on interest
rates, equity indexes, foreign
exchange, energy, agricultural
products and metals. The company offers futures and
options on futures trading through the CME Globex platform, fixed
income trading via BrokerTec and foreign exchange trading on the
EBS platform. In addition, it operates one of the world's
leading central counterparty clearing providers, CME
Clearing.
CME Group, the Globe logo, CME, Chicago Mercantile Exchange,
Globex, and, E-mini are trademarks of Chicago Mercantile
Exchange Inc. CBOT and Chicago Board of Trade are trademarks of Board
of Trade of the City of Chicago,
Inc. NYMEX, New York Mercantile Exchange and ClearPort are
trademarks of New York Mercantile Exchange, Inc. COMEX is a
trademark of Commodity Exchange, Inc. BrokerTec and EBS are
trademarks of BrokerTec Europe LTD and EBS Group LTD,
respectively. Dow Jones, Dow Jones Industrial Average, S&P
500 and S&P are service and/or trademarks of Dow Jones
Trademark Holdings LLC, Standard & Poor's Financial Services
LLC and S&P/Dow Jones Indices LLC, as the case may be, and have
been licensed for use by Chicago Mercantile Exchange Inc. All
other trademarks are the property of their respective
owners.
CME-G
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SOURCE CME Group