CHICAGO, ILLINOIS, U.S. — CME Group announced on May 11 the launch of Short-Dated New Crop Options on CBOT Corn and Soybeans futures to begin trading June 4.
Short-Dated New Crop Options on CBOT Wheat futures will be listed for trading beginning Sept. 4. These contracts are listed with, and subject to, the rules and regulations of CBOT.
"An increasing number of our producer customers use options to manage risk during the growing season," said Tim Andriesen, managing director, Agricultural Commodities and Alternative Investments, CME Group. "We're introducing our Short-Dated New Crop Options in response to growing customer demand for tools like these that allow them to manage that risk at a reduced cost during targeted timeframes in the growing season. Additionally, these options will enable our commercial grain customers to expand their offering of minimum price contracts to their producers."
Short-Dated New Corp Options are options on December Corn, November Soybeans and July Wheat with earlier expiry dates than the standard options on those contracts. For each futures contract, three earlier expiring options will be listed. May, July, and September contract months will be listed for Short-Dated New Crop Options on CBOT Corn and Soybeans futures. For Short-Dated New Crop Options on CBOT Wheat futures, December, March, and May contract months will be listed.
Short-Dated New Crop Options on Corn, Soybean and Wheat futures will complement CME Group's already deep and liquid agricultural options complex, which includes standard or serial options, weekly options, calendar and other spread options and the newly listed MGEX-CBOT Wheat Spread Options.
Short-Dated New Crop Options will be American style and will be listed for electronic trading on CME Globex and open-outcry on the above listed dates, pending self-certification with the CFTC.