Interpreting Commodity Futures and Options Price Quotes

Joe Parcell and Vern Pierce, Department of Agricultural Economics

This guide is designed to help those unfamiliar with commodity futures/options in understanding how to interpret futures and options price quotes. Those not familiar with futures and options price quotes may find the initial process of interpreting such price quotes as time consuming and frustrating. This is one in a series of risk management guides developed by University of Missouri-Columbia Extension.

Futures Price Quote

Table 1 shows a typical futures price quote page for the Chicago Mercantile Exchange Feeder Cattle Futures Contract. The table is explained by moving left to right across columns. Contract represents the month and year of the feeder cattle futures contract for which price quote are given. For instance, Jan-99 refers to the futures contract due to expire in January 1999. Open represents the opening futures price for the day. High represents the high bid for the day. Low represents the low bid for the day. Last represents the most recent bid of the day. For example, at 10:30 a.m. the last value would be the most recent bid and the high and low would represent the high and low of the day up until 10:30 a.m. Volume represents the number of contracts traded up until that time of the day. Settle price represents the final bid price for the most recently concluded trading day.

Options Price Quote

Table 2 shows a typical options price quote page for the Chicago Mercantile Exchange Feeder Cattle Futures Contract. The table is explained by moving left to right across columns. The month, year, and whether the table is a Call or Put option is described at the top of each portion of the table. Strike represents the price for which the Call or Put option contract is currently traded. Open represents the opening options price for the day. For instance, the $1.65/cwt. open price for a 7000 Call is the price that was bid at the beginning of the day for a $70/cwt. Chicago Mercantile Exchange Feeder Cattle Call option. High represents the high bid for the day. Low represents the low bid for the day. Last represents the most recent bid of the day. For example, at 10:30 a.m. the last value would be the most recent bid and the high and low would represent the high and low of the day up until 10:30 a.m. Change represents the change in bid value from the previous day close. Volume represents the number of contracts traded up until that time of the day.

Table 1. Chicago Mercantile Exchange Feeder Cattle Futures Price Quotes for 10:30 am
  Contract OPEN HIGH LOW LAST Volume Settle
  Jan-99 67.90 68.15 66.35 67.10 630 67.73
  Mar-99 68.00 68.10 66.40 67.15 204 67.70
  Apr-99 68.75 68.90 67.50 68.20 88 68.50
  May-99 69.55 69.80 68.30 69.00 35 69.48
  Aug-99 70.60 70.75 69.70 70.20 14 70.50
  Sep-99 70.15 70.35 69.50 69.70 4 70.30
  Oct-99 70.50 70.55 69.50 70.15 6 70.45
  Nov-99 70.80 71.55 70.50 70.80 1 71.50

Table 2. Chicago Mercantile Exchange Feeder Cattle Options Price Quotes for 10:30 am
  STRIKE OPEN HIGH LOW LAST CHANGE VOLUME
  March 1999 Call        
  6800 ---- ---- 2.15 2.15 -500  
  7000 1.65 1.65 1.3 1.3 -475 10
  7200 ---- 0.95 0.8 0.85 -300 20
  7300 ---- ---- ---- ---- UNCH  
  7400 0.75 0.75 0.5 0.5 -225 5
  7600 0.4 0.4 0.4 0.4 -25 5
  7800 0.25 0.25 0.2 0.2 -50 5
  8000 ---- ---- ---- ---- UNCH  
  8200 ---- ---- ---- ---- UNCH  
 
  March 1999 Put        
  5800 ---- ---- ---- ---- UNCH  
  6000 ---- 0.7 0.55 0.7 50 5
  6200 1 1.1 0.9 1.1 150 10
  6400 ---- 1.6 1.3 1.6 200 10
  6600 2.1 2.3 1.9 2.3 200 10
  6800 3.0 3.4 2.7 3.4 450 10
  7000 ---- 4.25 3.8 4.25 200 5
  7200 ---- ---- ---- ---- UNCH  

For more Information contact:

Joe Parcell Vern Pierce
Extension Economist Beef Economist, Commercial Agriculture Program
223E Mumford Hall 223D Mumford Hall
University of Missouri University of Missouri
Columbia, MO 65211 Columbia, MO 65211
Ph. (573) 882-0870 Ph. (573) 882-8229
Fax: (573) 884-6572 Fax: (573) 884-6572
parcellj@missouri.edu piercev@missouri.edu

Accompanying Publications in Risk Management Series:


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