CBOT Soy complex Futures & Options

The CBOT Soybean complex Futures & Options contract gives investors exposure to the international commodities market. A futures contract is a legally binding agreement that gives the investor the right to buy or sell an underlying commodity at a fixed price on a future date.

Benefits

• Effectively manage price risk with a view on the international market
• Effectively evaluate both the current and future world supply and demand for soybeans
• Identify short term and long term price and volatility patterns for beans
• Hedge or gain exposure based on expectations of directional price, spread movement or volatility in soybeans, soybean meal and soybean oil
• Enable oil crushers to hedge their exposure off an international benchmark

Who should use this product

• Hedgers seeking to protect themselves against adverse price movements with a view that the international market is a better hedge
• Speculators hoping to make a profit on short-term movements in the futures contract price
• Speculators hoping to benefit for the spread opportunities between the local vs international market

How to use this product

• Register as a client with an authorised member firm
• Deposit the required initial margin (good faith deposit) to be able to take out a sell or buy futures position
• Sell a futures contract to protect yourself against downside movement. Buy a futures contract to protect yourself against upside movement.

For more information on CBOT Soybean complex Futures & Options E-mail commodities@jse.co.za