Soybean Meal Calendar Spread Options
In commodity market terminology, Soybean Meal Calendar Spread Options refer to options on the price differential between two Soybean Meal contract months instead of on the Soybean Meal futures price itself. Soybean meal is a by-product of soybeans obtained by grinding the flakes left over from the removal of the oil contained in soybeans with a solvent. Soybeans are an oilseed legume originally from East Asia that has been used for centuries as a protein source both for humans and animals.
Contracts for Soybean Meal Calendar Spread Options are traded on the Chicago Board of Trade and the CME Groupís Globex electronic trading platform. Each contract consists of one long Soybean Meal futures contract (of a particular month) and one short Soybean Meal futures contract (of a different specified month), each consisting of 100 short tons. Prices are quoted in U.S. Dollars with a minimum fluctuation of 5 cents per bushel or $5.00 per contract.