ASX Grain Futures and Options Trading strategies
Introduction to Hedging
If you are new to the market and want to learn what hedging is all about, then you have come to the right place. Like all industries, the financial market has its fair share of industry jargon. While every attempt has been made to limit the jargon used in this material, it is unavoidable that some jargon will be used. In such a circumstance, you may find the futures glossary useful to explain a term used.
Following the liberalisation of bulk exports of Australian wheat, there is now a real need for all involved in the grain industry to better equip themselves with marketing and risk management information and knowledge.
Grain marketing and risk management is interesting and challenging in that there is plenty to learn and everyone in the market is constantly learning. Some might say that derivative products such as futures and options are not for everyone, but everyone owes it to themselves to at least know what these products can do and the role they will play in the liberalised market.
About Grain Futures
- A Working Introduction (PDF 156KB)
- Australian Wheat Spread: West Coast versus East Coast - An analysis (PDF 122KB) NEW
About Grain Options
-
Grain Price Insurance (PDF 450KB)
Put Options
-
The Power of a Put Option (PDF 39KB)
Call Options
-
The Flexibility of a Call Option (PDF 39KB)
Helpful articles for end users
-
Managing drought price risk (PDF 130KB)
-
Helping feed grain users manage grain price risk (PDF 896KB)
-
Helping piggeries hedge their grain price risk (PDF 160KB)

