Commodity exchange

Commodity exchange

Industry: Financial services

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Commodity exchange

Basis risk

Financial services; Commodity exchange

The risk associated with an unexpected widening or narrowing of basis between the time a hedge position is established and the time that it is lifted.

Steer/corn ratio

Financial services; Commodity exchange

The relationship of cattle prices to feeding costs. It is measured by dividing the price of cattle ($/hundredweight) by the price of corn ($/bushel). When corn prices are high relative to cattle ...

The relationship of feeding costs to the dollar value of hogs. It is measured by dividing the price of hogs ($/hundredweight) by the price of corn ($/bushel). When corn prices are high relative to ...

Intermarket spread

Financial services; Commodity exchange

The sale of a given delivery month of a futures contract on one exchange and the simultaneous purchase of the same delivery month and futures contract on another exchange.

Resumption

Financial services; Commodity exchange

The reopening the following day of specific futures and options markets that also trade during the evening session at the Chicago Board of Trade.

Reverse crush spread

Financial services; Commodity exchange

The sale of soybean futures and the simultaneous purchase of soybean oil and meal futures. The purchase of soybean futures and the simultaneous sale of soybean oil and meal futures.