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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.  ASX is committed to the industry to protect your business against volatility and to secure cash flow. 

Ian Waddell presents an overview of ASX's role, product benefits, market participants and the role of the clearing house.

Watch and learn more about risk management with ASX Grains Futures and Options.

ASX Commodity Derivatives

Seek to hedge your market exposure and secure cash flow in a volatile world by trading ASX grain derivatives with grain futures and options on domestic wheat and barley. Trading derivatives on ASX24 is standardised, regulated, liquid and transparent.  


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 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.

FuturesOptionsFuturesDelivery Period
Settlement monthCodeExpiry monthDeclaration date^Close out dateStart dateLast day for lodgements deadline: 2.00pm*Maturity date


^ 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.