CHICAGO, June 22, 2010 – CME Group, the world’s leading and most diverse derivatives marketplace, today announced the launch of intercommodity options on corn/wheat futures spreads scheduled to begin trading on July 25, 2010. These contracts are listed with, and subject to, the rules and regulations of the CBOT.
The new listing, which will be available on CME Globex and in open outcry, will enable market participants to trade options on corn/wheat intercommodity futures spreads. The two commodities are closely linked by market fundamentals such as available planting acreage, demand for feed and the impact of weather.
“Historically, agricultural commodities market participants have traded the relationships between corn and wheat based on shifting product profitability and production,” said Tim Andriesen, CME Group Managing Director of Agricultural Commodities Products and Services. “These new listings allow customers to trade these spreads in the form of an option, helping to manage their risk at a fixed cost.”
Trading hours for the new spread contracts are 6:00 p.m. to 7:15 a.m. and then 9:30 a.m. to 1:15 p.m. Sunday through Friday Central time. Open outcry will follow regular trading hours for grain products of 9:30 a.m. to 1:15 p.m. Monday through Friday.