CHICAGO BEAN TRADE CODE
CHICAGO BEAN TRADE PLUS

An options bet succeeds only if the price of soybean futures rises above the strike price by an amount greater than the premium paid for the contract. Options buyers pay a price known as a premium to purchase contracts. However, options also have a strike price, which is the price above which the option finishes in the money. As with futures, options have an expiration date. Options are also a derivative instrument that employs leverage to trade in commodities. The CME also offers an options contract on the soybean futures contract. Traders should pay attention to the sessions where commodities trade because different times of the day can lead to variations in the amount of liquidity present. “ GLOBEX VOL” shows the number of contracts traded for the session.Therefore, -4’4 means a decline of 4 and 4/8 cents or 4 and ½ cents. Again, the amount after the (‘) mark indicates one-eighths of a cent. “ CHANGE” in the chart above shows the change in price for the trading session.Therefore, 1048’6 is read as 1,048 and 6/8 of a cent, or, in other words, $10.48 and ¾ of a cent. The amount after the (‘) mark indicates one-eighths of a cent. “ LAST” in the chart at right shows the most recent price of soybeans in cents per bushel.In the example above, the product is the July 2018 soybean future (ZS is the symbol for soybeans, N is the symbol for July and the 8 indicates the year 2018).

CHICAGO BEAN TRADE CODE

As for the contract months, the CME assigns a code to each month.

Reading Month CodesĮach tick is equivalent to $6.25, so each one cent move in soybean prices equates to $50 per contract. Soybeans and other grains trade in cents per bushel, and the minimum tick (trading increment) is $0.00125 (one-eighth of a cent) per contract.

In the case of soybeans, the contract symbol is ZS and the contract size is 5,000 bushels. The relevant pieces of information for each commodity are its symbol, contract size, minimum tick (trading increment), the dollar value of each tick and the contract months. The CME posts the specifications for each product traded on its exchange. To understand pricing for soybean and other grain futures markets, you should begin by examining the contract information at the Chicago Mercantile Exchange (CME), which operates the leading marketplace for the commodity. January (F), March (H), May (K), July (N), August (Q), September (U), October (V) & December (Z)

CHICAGO BEAN TRADE PLUS

Monthly contracts listed for 3 consecutive months and 9 months of January, March, May, July, August, September and November plus next available November. We assembled this comparison of the three futures contracts:ġ/8 of one cent per bushel ($6.25 per contract)ġ0 cents per short ton ($10.00 per contract)ġ/100 of a cent ($0.0001) per pound ($6.00 per contract) Each of these products has unique specifications associated with it. The CME offers trading on soybeans, soybean meal and soybean oil. What Are the Different Types of Soybean Futures Contracts?

Trading in futures requires a high level of sophistication since factors such as storage costs and interest rates affect pricing. At expiration, traders must either accept physical delivery of soybeans or roll their positions forward to the next trading month. If prices decline, traders must deposit additional margin in order to maintain their positions. The CME contract trades globally on the CME Globex electronic trading platform and has expiration months of January, March, May, July, August, September, and November.įutures are a derivative instrument that allow traders to make leveraged bets on commodity prices. The soybean contract settles into 5,000 bushels, or 136 metric tons, of soybeans. The Chicago Mercantile Exchange (CME) trades a soybean futures contract. Soybean traders have several ways to trade in the commodity including futures, options, ETFs, shares of soybean companies, and CFDs.

Chicago bean trade