Education Commons^™

G86-771 Evaluating Options Vs. Futures Contracts, Lynn H. Lutgen

University of Nebraska-Lincoln Extension: Historical Materials

This is number four in a series of six NebGuides on agricultural options. It explains how to evaluate options vs futures contracts.

Options and futures contracts are similar. Both represent actions that occur in the future. Futures markets are contracts to either accept or deliver the actual physical commodity, while an option contract is a contract on the underlying futures contract. Options contracts give the farmer the right, but not the obligation, to buy or sell an underlying commodity. This underlying commodity is a futures contract. Due to these similarities and the fact that options are based on a futures …

G86-773 How To Evaluate Grain Pricing Opportunities, Lynn H. Lutgen

University of Nebraska-Lincoln Extension: Historical Materials

This is the last in a series of six NebGuides on agricultural options and discusses "homework" needed to evaluate pricing opportunities.

The market is an ever changing dynamic force. While we recognize this, we also realize that to do a good job of marketing, we must be able to evaluate our pricing opportunities. We must be able to evaluate what the market is offering quickly and efficiently. Evaluating pricing opportunities comes from time spent doing homework throughout the year. If we have done this homework, we can listen to the grain market reports (Chicago futures) on the radio and quickly …

G86-772 Using Options To Follow A Rising Market, Lynn H. Lutgen

University of Nebraska-Lincoln Extension: Historical Materials

This is number five in a series of six NebGuides on Agricultural Options. It discusses how to use the options market effectively to protect us from our own emotions.

An interesting aspect of marketing is psychological. Many people make a mental decision to market grain when a specific price is reached. However, when the market begins to trend upward and hits that imaginary price level, the farmer previously facing low prices is 1) optimistic for even higher prices, and 2) wants to obtain the highest possible price to offset losses incurred during low prices. What generally happens is 1) no …

G85-769 Options Contract Specifications On Grain Futures Contracts, Lynn H. Lutgen, Lynne A. Todd

University of Nebraska-Lincoln Extension: Historical Materials

This publication, the second of six NebGuides on agricultural grain options, explains specifications and uses of futures contracts for corn and soybean trading.

Before using options on agricultural futures contracts, it is essential to understand what constitutes an options contract.

This publication outlines contract specifications of corn and soybean options on corresponding futures contracts presently traded at the Chicago Board of Trade (CBT).

All contract specifications are discussed including: price quotations, maximum and minimum price fluctuation figures, and last trading day for an option. How strike prices and premium values are determined in relation to futures contract prices also will …

G85-768 Basic Terminology For Understanding Grain Options, Lynn H. Lutgen

University of Nebraska-Lincoln Extension: Historical Materials

This publication, the first of six NebGuides on agricultural grain options, defines many of the terms commonly used in futures trading.

In order to properly understand examples and literature on options trading, it is imperative the reader understand the terminology used in trading grain options. The following list also includes terms commonly used in futures trading. These terms are included because the option is traded on an underlying futures contract position. It is an option on the futures market, not on the physical commodity itself. Therefore, a producer also needs a basic understanding of the futures market.

G85-770 An Introduction To Grain Options On Futures Contracts, Lynn H. Lutgen, Lynne A. Todd

University of Nebraska-Lincoln Extension: Historical Materials

This publication, the third of six NebGuides on agricultural grain options, explains how to use futures options as a marketing tool.

A new agricultural marketing tool is available to farmers. A futures agricultural option is much like an insurance policy. It is a marketing alternative that gives farmers insurance against unfavorable price moves, but allows producers to take advantage of favorable price moves. To better understand terms used in this paper, please see NebGuide G85-768, Basic Terminology For Understanding Grain Options.

G82-622 Sources Of Grain Market Information, Allen C. Wellman

University of Nebraska-Lincoln Extension: Historical Materials

A list of various market information sources, each followed by a brief summary of distribution schedules and contents.

This NebGuide lists widely used and readily available market information sources that contain information which may be useful to agricultural producers, lenders and agribusiness firms when making grain marketing decisions. Most of the available market information and statistical data comes from the U.S. Department of Agriculture (USDA).

Generally, there are two basic types of market information available to data users. The first type, Market News Service, is provided by the USDA's Agricultural Marketing Service (AMS) and concerns daily prices used to make …