Given geopolitical tensions, weather concerns, renewable fuel policy and export demand trends, agricultural market participants have utilized options in record fashion to help mitigate risk. There has been a significant rise in usage observed for Soybean Oil, Meal, and short-term options.
The Agricultural options complex set a record ADV of 384,099 contracts for the quarter and also achieved a single-day volume record by trading 976K contracts on June 16.
Four products set quarterly ADV records:
- Record short-term option ADV
- Short-Dated New Crop options – 35,173
- Weekly options – 13,291
- Record Soybean Oil ADV – 22,878
- Record Soybean Meal ADV – 18,572
- Record Calendar Spread Option ADV – 5,405
Read original article: https://cattlemensharrison.com/q3-2023-agricultural-update/
By: CME Group