The five MGEX financially settled agricultural index contracts provide solid trading options for traditional hedgers and speculators. Whether you want to create a synthetic basis trade, a storage hedge or simply lay off risk from another trade, the MGEX indexes are tools you can use to get it done.
Predictable Basis Helps Hedgers Use Futures To Minimize Risk
Predictable basis and reliable convergence between cash and futures markets are needed to make good merchandising and hedging decisions. Because they are financially settled to a spot index of country origin pricing as calculated by DTN, MGEX agricultural index products ensure convergence. Wheat basis and convergence charts for Northern Ohio, Toledo, Mt Vernon, St. Louis and Memphis are available.
The MGEX website offers tools to help you compare the index contract and the futures market performance by simply changing the index symbol and or futures market symbol where indicated in the spread sheet. Take a look at the comparisons for Wheat, Corn, and Soybeans.
Wheat Spreading Opportunities
The three MGEX wheat index products provide traders with myriad trading opportunities. Learn more about using these indices in your trading strategies.
Creating Synthetic Basis Positions
The chart below shows the June 2010 Soft Red Winter Wheat Index (SRWI) - July 2010 Chicago Wheat spread, or synthetic basis spread. Read more detail on this application here.
General Information, Symbols, Examples
MGEX Index FAQ Contract Specifications Financial Settlement Defined Agricultural Indexes Brochure
Wheat Spread Opportunities Index Futures Monthly Settlement Prices Historical Spot DTN Indexes
The Options Advantage Sparks Study of MGEX Indexes Quotes and Charts
Trading at MGEX
Margin Requirements Trading and Clearing Fees Electronic Trading Information
MGEX Ticker Symbols and Trading Hours Trading Calendars and Exchange Holidays