Navigating The Ebbs and Flows of Volatility in Grain Markets | Oliver Sloup's Ag Insights

Posted: Feb. 4, 2023, 7:26 a.m.


Explore our short-term Agricultural options

  • All short-term Ag options expire on a Friday and have the same tick size and expiration style as standard options. This commodity lends itself to overlay hedges on long-term positions or spread trading.

Understanding old crop vs. new crop

  • Old crop futures represent grain that has already been harvested, whereas new crop futures represent crops that are yet to be harvested. Both contracts are based on the same commodity but are fundamentally very different and can act accordingly. Old crop contracts typically have more volatility given macro sensitivities in comparison to new crop futures.

New Crop Weekly options

  • Weather-driven views (example)
    • An active trader wants to enter the corn market given an upcoming heatwave that they expect to impact price. New crop contracts represent grain that has not yet been harvested, so the weather has a bigger impact on price volatility. The active trader chooses New Crop Weekly options for a cost-effective way to gain exposure to short-term market fluctuations.

Contact us for more information about trading short-term agricultural options!

You can email us at info@BlueLineFutures.com or call 312-278-0500



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