• prod
  • s7connect
  • crx3
  • samplecontent
  • publish
  • crx3tar

Grain derivatives

ASX Grains futures and options may be a cost-effective way to manage risk, protect your business against volatility, secure future cash flows or capitalise on changing market prices 

Discover fresh opportunities

Grain has been a major agricultural export for Australia for more than a century. Recognised for the quality of our product, Australian grains remain structurally important to the global market.

At ASX, we are committed to the Australian grains industry. This means working with our customers and industry representatives to build and deliver effective products to service the market.

If you have an interest in Australian grain, then you and your business may benefit from ASX Grains – used by growers, mills, feedlots, bulk handlers, exporters and traders, among others.

 

In this video, ASX's Ian Waddell, explains ASX Grain Futures and Options and how to protect your business against volatility and to secure future cash flows.

Opportunities

For grain producers and consumers

  • Manage price risk: protect your business against price fluctuations and take greater control of the prices you pay or receive
  • Manage credit risk: trade on a market that is centrally cleared by ASX Clear (Futures), with daily margin collection to help ensure participants meet their obligations
  • Manage production and consumption risk: options help you protect against price fluctuations without the obligation to produce or consume physical grains
  • Manage currency risk: ASX Grains contracts are priced in Australian dollars, reducing foreign exchange risks.

 

For speculators and traders

  • Generate alpha: ASX Grains futures and options offer cost-effective exposure to an alternative asset class, creating the potential for improved returns or diversification.
  • Trade relative value spreads: ASX Grains contracts provide opportunities to create time, quality or geographical spreads, so you can trade on your view of price trends or the relative performance of Australian and global derivatives.
  • Manage basis risk: there is a strong correlation between ASX and the underlying markets for Australian agricultural commodities, reducing basis risk and making ASX Grains an efficient hedging and trading tool.

Benefits of trading with ASX

  • Leveraged profit and losses: when you trade futures, the percentage return on your initial investment may be far greater than the movement in the underlying index, either positive or negative. Unlike options, where the financial cost to the buyer may be limited to the cost of the premium, both the buyer and the seller of a futures contract face potentially unlimited losses. 
  • Hedging: using ASX Grains futures and options to protect against price fluctuations involves basis risk – the risk that movements in the value of your derivatives do not accurately track the underlying grains market. You may also face additional risks if the number of lots you choose to hedge does not match the quantity of grain you produce or consume.
  • Margin calls: if you write options or trade futures, you may be required to provide extra security to ensure you can meet your obligations. If you can’t do so, your broker may close out your position and you will be liable for any losses.
  • Complexity: option and futures trading strategies can be complex. Before trading, you should ensure you fully understand the risks and, if necessary, consult a qualified adviser.
     

 

 

 



Market essentials

ASX Grains maturity calendar

ASX has developed a Contract Maturity and Delivery Dates calendar for you to keep close at hand on your desktop. Printed copies are also available for order.

ASX grains futures and options

ASX Grains futures are deliverable contracts. Delivery periods:

  • start on the second business day of the contract month; and
  • end at 3.00pm on the third Thursday of the contract month (provided it is a Trading Day).

Once the delivery period starts, deliverable stock is automatically allocated to holders of long (bought) futures positions at random. This allocation can happen at any time during the delivery period.

Futures Options Futures Delivery Period
Settlement month Code Expiry month Declaration date^ Close out date Start date Last day for lodgements deadline: 2.00pm* Maturity date
May 2021 K1 April 2021 23.04.21 26.04.21 04.05.21 18.05.21 20.05.21
July 2021 N1 June 2021 21.06.21 22.06.21 02.07.21 13.07.21 15.07.21
September 2021 U1 August 2021 20.08.21 23.08.21 02.09.21 14.09.21 16.09.21
January 2022 F2 December 2021 21.12.21 22.12.21 05.01.22 18.01.22 20.01.22
March 2022 H2 February 2022 21.02.22 22.02.22 02.03.22 15.03.22 17.03.22
May 2022 K2 April 2022 26.04.22 27.04.22 03.05.22 17.05.22 19.05.22
July 2022 N2 January 2022 21.06.22 22.06.22 04.07.22 19.07.22 21.07.22
September 2022 U2 August 2022 19.08.22 22.08.22 02.09.22 13.09.22 15.09.22
January 2023 F3 December 2022 21.12.22 22.12.22 03.01.23 17.01.23 19.01.23

 

 

^ The Declaration Date for ASX Grain Options is the fifteenth trading day of the month immediately prior to the contract Settlement Month for the Underlying Futures.

^^ For Feed Barley and Sorghum only. Eastern Australia Wheat, WA Wheat and Canola do not have a November Settlement Month listed and therefore no October options either.

* AEST/AEDT