@sdelsad/commodity-desk-daily 1.0.53 → 1.0.54
This diff represents the content of publicly available package versions that have been released to one of the supported registries. The information contained in this diff is provided for informational purposes only and reflects changes between package versions as they appear in their respective public registries.
- package/ep17.html +709 -0
- package/ep17_chart1.png +0 -0
- package/ep17_chart2.png +0 -0
- package/ep17_chart3.png +0 -0
- package/package.json +1 -1
package/ep17.html
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<!DOCTYPE html>
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<html lang="en" data-theme="light">
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<head>
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<meta charset="utf-8">
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<meta name="viewport" content="width=device-width, initial-scale=1">
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<title>Ep 17 — Options: The Fence, the Vol Crush and the Wing You Sold · Soft Commodity Trading</title>
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<meta name="description" content="How hedging desks actually use options: the fence around a physical position, worked through a WASDE three ways.">
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<meta name="author" content="Sébastien Delsad">
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<link rel="canonical" href="https://storage.googleapis.com/podcast-audio-2647223968/commodity-desk-daily/ep17.html">
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<meta property="og:type" content="article">
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<meta property="og:site_name" content="Soft Commodity Trading">
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<meta property="og:title" content="Ep 17 — Options: The Fence, the Vol Crush and the Wing You Sold">
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<meta property="og:description" content="How hedging desks actually use options: the fence around a physical position, worked through a WASDE three ways.">
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<meta property="og:url" content="https://storage.googleapis.com/podcast-audio-2647223968/commodity-desk-daily/ep17.html">
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<meta property="og:image" content="https://cdn.jsdelivr.net/npm/@sdelsad/commodity-desk-daily@1.0.15/cover.jpg">
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<meta property="og:image:alt" content="Soft Commodity Trading cover art">
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<meta property="og:audio" content="https://storage.googleapis.com/podcast-audio-2647223968/commodity-desk-daily/ep17.mp3">
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<meta property="og:audio:type" content="audio/mpeg">
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<meta property="article:published_time" content="2026-09-08">
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<meta name="twitter:card" content="summary_large_image">
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<meta name="twitter:title" content="Ep 17 — Options: The Fence, the Vol Crush and the Wing You Sold">
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<meta name="twitter:description" content="How hedging desks actually use options: the fence around a physical position, worked through a WASDE three ways.">
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<meta name="twitter:image" content="https://cdn.jsdelivr.net/npm/@sdelsad/commodity-desk-daily@1.0.15/cover.jpg">
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<meta name="theme-color" content="#14110e" media="(prefers-color-scheme: dark)">
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<link rel="alternate" type="application/rss+xml" title="Soft Commodity Trading" href="https://storage.googleapis.com/podcast-audio-2647223968/commodity-desk-daily/feed.xml">
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<script type="application/ld+json">
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{
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"@context": "https://schema.org",
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"@type": "PodcastEpisode",
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"url": "https://storage.googleapis.com/podcast-audio-2647223968/commodity-desk-daily/ep17.html",
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"name": "Ep 17 — Options: The Fence, the Vol Crush and the Wing You Sold",
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"episodeNumber": 17,
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"duration": "PT11M42S",
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"description": "How hedging desks actually use options: the fence around a physical position, worked through a WASDE three ways.",
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"image": "https://cdn.jsdelivr.net/npm/@sdelsad/commodity-desk-daily@1.0.15/cover.jpg",
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"inLanguage": "en",
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"author": {
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"@type": "Person",
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"name": "Sébastien Delsad"
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"associatedMedia": {
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"name": "Soft Commodity Trading",
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"datePublished": "2026-09-08"
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}
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</script>
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<style>
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:root{
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--ink:#16110c; --ink-soft:#4a4238; --line:#e3ddd2; --paper:#faf7f1;
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--accent:#1d4032; --gold:#a8813c; --spoiler:#8a2f2f;
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--up:#215c44; --down:#8a2f2f; --shadow:rgba(22,17,12,.14);
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--sans:ui-sans-serif,system-ui,-apple-system,"Segoe UI",Roboto,sans-serif;
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--col:680px;
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html[data-theme="dark"]{
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--ink:#ece6dc; --ink-soft:#a49c90; --line:#2f2a24; --paper:#14110e;
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--accent:#7fae95; --gold:#c9a45c; --spoiler:#d98a8a;
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--tint:rgba(200,180,130,.06); --tint-2:rgba(200,180,130,.035);
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--up:#7fae95; --down:#d98a8a; --shadow:rgba(0,0,0,.55);
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color-scheme:dark;
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}
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*{box-sizing:border-box}
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html{scroll-behavior:smooth;scroll-padding-top:64px}
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html,body{transition:background-color .25s ease,color .25s ease}
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body{margin:0;background:var(--paper);color:var(--ink);
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font:18px/1.72 var(--serif);-webkit-font-smoothing:antialiased;
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text-rendering:optimizeLegibility}
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.wrap{max-width:var(--col);margin:0 auto;padding:0 24px 40px}
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white-space:nowrap}
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/* ---------- reading progress ---------- */
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background:var(--gold);transition:width .12s linear}
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/* ---------- masthead ---------- */
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header{padding:52px 0 30px}
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padding-bottom:12px;border-bottom:1px solid var(--ink);
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font:600 13px/1 var(--sans);letter-spacing:.13em;text-transform:uppercase}
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.masthead a{color:inherit;text-decoration:none}
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h1{font-size:clamp(31px,5.6vw,44px);line-height:1.12;margin:26px 0 0;
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letter-spacing:.05em;text-transform:uppercase}
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.meta b{font-weight:600;color:var(--ink)}
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/* ---------- listen ---------- */
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.listen{margin-top:26px;border:1px solid var(--line);border-radius:12px;
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background:var(--tint-2);padding:16px 18px 14px}
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audio{width:100%;height:38px;display:block}
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.listenrow{display:flex;flex-wrap:wrap;gap:8px 16px;align-items:center;
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margin-top:12px;font:12.5px/1 var(--sans);color:var(--ink-soft)}
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.rates{display:flex;gap:6px;margin-right:auto}
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font:600 11.5px/1 var(--sans);letter-spacing:.04em;transition:all .2s}
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/* ---------- contents ---------- */
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.toc{margin:34px 0 6px;padding:16px 0 4px;border-top:1px solid var(--line);
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color:var(--gold);margin:0 0 12px}
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.toc ol{list-style:none;margin:0 0 12px;padding:0;
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font:14.5px/1.5 var(--sans);columns:2;column-gap:26px}
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.toc a{color:var(--ink-soft);text-decoration:none;border-bottom:1px solid transparent}
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.toc a:hover{color:var(--ink);border-color:var(--gold)}
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.toc li.on>a{color:var(--ink);font-weight:600}
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/* ---------- body ---------- */
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main{padding-top:8px}
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font-variant-caps:all-small-caps;letter-spacing:.045em;
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padding-bottom:9px;border-bottom:1px solid var(--line)}
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h3{font-size:23px;line-height:1.3;margin:38px 0 10px;letter-spacing:-.012em;
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font-weight:400}
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blockquote strong{font-style:normal;color:var(--ink);font-weight:600}
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hr{border:none;border-top:1px solid var(--line);margin:40px 0}
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background:
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th{text-align:left;font-size:11.5px;letter-spacing:.1em;text-transform:uppercase;
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font-weight:600;white-space:nowrap}
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td{padding:10px 14px 10px 0;border-bottom:1px solid var(--line);vertical-align:top}
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tbody tr:last-child td{border-bottom:none}
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tr td:first-child{font-weight:600;padding-right:20px;min-width:9em}
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/* ---------- quiz and solutions ---------- */
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.solnbar{display:flex;gap:8px;margin:0 0 16px}
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.ghost{background:none;border:1px solid var(--line);color:var(--ink-soft);
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border-radius:99px;padding:6px 14px;cursor:pointer;
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font:600 11.5px/1 var(--sans);letter-spacing:.06em;text-transform:uppercase;
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transition:all .2s}
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gap:12px;border:1px solid var(--line);border-left:3px solid var(--spoiler);
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border-radius:7px;padding:11px 16px;transition:all .2s;background:var(--tint-2)}
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summary::-webkit-details-marker{display:none}
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details.soln>summary:hover{border-color:var(--spoiler);background:var(--tint)}
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.qn{font:700 13px/1 var(--sans);letter-spacing:.08em;color:var(--spoiler);
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text-transform:uppercase}
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details[open]>summary .sl{opacity:.6}
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padding:2px 0 2px 20px;font-size:17.5px}
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.backq a:hover{color:var(--accent)}
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/* ---------- glossary ---------- */
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display:flex;align-items:baseline;justify-content:space-between;gap:14px;
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border:1px solid var(--line);border-radius:8px;padding:13px 18px;
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font:600 14px/1 var(--sans);letter-spacing:.03em;transition:all .2s;
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background:var(--tint-2)}
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<a href="https://storage.googleapis.com/podcast-audio-2647223968/index.html">Soft Commodity Trading</a>
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<span class="epno">Ep 17</span>
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<h1>Options: The Fence, the Vol Crush and the Wing You Sold</h1>
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<p class="dek">How hedging desks actually use options: the fence around a physical position, worked through a WASDE three ways.</p>
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<div class="meta">Tuesday 8 September 2026 · <b>11 min 42</b></div>
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<nav class="toc" id="toc" aria-label="Contents"><p class="tochead">Contents</p><ol><li class="t2"><a href="#the-geopolitical-read">The geopolitical read</a></li><li class="t2"><a href="#solutions">Solutions</a></li><li class="t2"><a href="#the-trade-nobody-in-the-textbook-puts-on">The trade nobody in the textbook puts on</a></li><li class="t2"><a href="#friday-three-ways">Friday, three ways</a></li><li class="t2"><a href="#skew-and-which-wing-is-actually-dear">Skew, and which wing is actually dear</a></li><li class="t2"><a href="#what-the-free-wing-actually-costs">What the free wing actually costs</a></li><li class="t2"><a href="#how-it-gets-quoted">How it gets quoted</a></li><li class="t2"><a href="#glossary">Glossary</a></li></ol></nav>
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<p><strong>Chicago was closed on Monday for Labor Day, so the tape still reads Friday — a complex that gave a little back from three-year highs, three days before a WASDE.</strong></p>
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<div class="tablewrap" tabindex="0" role="region" aria-label="Table, scrolls sideways"><table><thead><tr><th>Contract</th><th>Last</th><th class="num">Change</th></tr></thead><tbody><tr><td>Dec corn (CBOT)</td><td>536.75 c/bu</td><td class="num"><span class="mv down">−4</span></td></tr><tr><td>Nov soybeans (CBOT)</td><td>1,309.75 c/bu</td><td class="num"><span class="mv down">−6½</span></td></tr><tr><td>Dec Chicago SRW (CBOT)</td><td>734.00 c/bu</td><td class="num"><span class="mv down">−20¼</span></td></tr><tr><td>Dec KC HRW (CBOT)</td><td>802.25 c/bu</td><td class="num"><span class="mv down">−13¼</span></td></tr><tr><td>Dec milling wheat (Matif)</td><td>€246.25/t</td><td class="num"><span class="mv down">−1.0%</span></td></tr></tbody></table></div>
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<p>Corn is roughly thirteen cents below the three-year high it printed on Friday morning, and soybeans sit just under a two-and-a-half-year high. Nothing in the grain complex is cheap. What changed late last week was wheat, and the reason was diplomatic rather than agricultural. Chicago December wheat lost 20¼ cents on Friday and Matif December gave up one percent to €246.25, after touching a contract high of €259.25 on Wednesday — a two-year peak on the second month.</p>
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<p>The next scheduled event is Friday's WASDE. The trade is looking for a corn yield cut of two to three bushels an acre from the current 180.7. That is a market at a multi-year high, with a war being renegotiated in public, walking into a government report.</p>
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<style>.chart{--c-a:var(--accent,#1d4032);--c-b:var(--gold,#a8813c);--c-c:#4a6f8c;font-family:inherit}html[data-theme="dark"] .chart{--c-c:#7ba3c4}.chart .grid{stroke:var(--line,#ddd6c9);stroke-width:1}.chart .axis{fill:var(--ink-soft,#4a4238);font-size:12px}.chart .unit{fill:var(--ink-soft,#4a4238);font-size:11px;letter-spacing:.06em;text-transform:uppercase}.chart .ln{fill:none;stroke-width:2.25;stroke-linejoin:round;stroke-linecap:round}.chart .lg{fill:var(--ink,#16110c);font-size:12.5px}.chart .vlabel{fill:var(--ink,#16110c);font-size:11.5px;font-weight:600}@media (max-width:900px){.chart .axis{font-size:14px}.chart .unit{font-size:13px}.chart .lg{font-size:14.5px}.chart .vlabel{font-size:13.5px}.chart .ln{stroke-width:2.6}}@media (max-width:640px){.chart .axis{font-size:16px}.chart .unit{font-size:14px}.chart .lg{font-size:16px}.chart .vlabel{font-size:15px}.chart .ln{stroke-width:3.1}}</style>
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424
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+
<line class="grid" x1="56" y1="286.0" x2="622" y2="286.0" opacity=".45"/>
|
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425
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+
<text class="axis" x="46" y="290.0" text-anchor="end">500</text>
|
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426
|
+
<line class="grid" x1="56" y1="234.5" x2="622" y2="234.5" opacity=".45"/>
|
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427
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+
<text class="axis" x="46" y="238.5" text-anchor="end">510</text>
|
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428
|
+
<line class="grid" x1="56" y1="183.0" x2="622" y2="183.0" opacity=".45"/>
|
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429
|
+
<text class="axis" x="46" y="187.0" text-anchor="end">520</text>
|
|
430
|
+
<line class="grid" x1="56" y1="131.5" x2="622" y2="131.5" opacity=".45"/>
|
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431
|
+
<text class="axis" x="46" y="135.5" text-anchor="end">530</text>
|
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432
|
+
<line class="grid" x1="56" y1="80.1" x2="622" y2="80.1" opacity=".45"/>
|
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433
|
+
<text class="axis" x="46" y="84.1" text-anchor="end">540</text>
|
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434
|
+
<line class="grid" x1="56" y1="28.6" x2="622" y2="28.6" opacity=".45"/>
|
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435
|
+
<text class="axis" x="46" y="32.6" text-anchor="end">550</text>
|
|
436
|
+
<text class="unit" x="46" y="16" text-anchor="end">c/bu</text>
|
|
437
|
+
<text class="axis" x="56.0" y="306" text-anchor="middle">21 Aug</text>
|
|
438
|
+
<text class="axis" x="244.7" y="306" text-anchor="middle">1 Sep</text>
|
|
439
|
+
<text class="axis" x="433.3" y="306" text-anchor="middle">3 Sep</text>
|
|
440
|
+
<text class="axis" x="622.0" y="306" text-anchor="end">4 Sep</text>
|
|
441
|
+
<path class="ln" d="M56.0 242.2 L244.7 49.2 L433.3 76.2 L622.0 96.8" stroke="var(--c-a)"/>
|
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442
|
+
<circle cx="622.0" cy="96.8" r="3.4" fill="var(--c-a)"/>
|
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443
|
+
</svg>
|
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444
|
+
<figcaption class="chartcap">Corn climbed to a three-year high and then gave back a little into a holiday weekend. It enters Friday's WASDE near the top of its range, which is where option protection gets expensive. <span class="chartsrc">CBOT settlements, 21 August to 4 September 2026, as reported</span></figcaption>
|
|
445
|
+
</figure>
|
|
446
|
+
<h2 id="the-geopolitical-read">The geopolitical read<a class="anchor" href="#the-geopolitical-read" aria-label="Link to this section">#</a></h2>
|
|
447
|
+
<p>US envoys travelled to Moscow and Kyiv over the weekend to discuss peace proposals. The market had already begun pricing that on Thursday and Friday, which is most of why wheat fell. Then, through the talks themselves, Russia struck Ukrainian grain facilities at Izmail on the Danube and at Chornomorsk, and Ukraine struck Russian refineries at Ryazan, in Perm and in Tatarstan.</p>
|
|
448
|
+
<p>The mechanism is worth being precise about, because it is not a supply mechanism. Ukrainian shipments in the week to 2 September were 433,000 t — up 80 percent on the week, and still a fraction of a normal year. No loading capacity was repaired last week and none was destroyed on a scale that changes the season. What moved was the <strong>probability the market assigns to capacity returning</strong>. A war-risk premium is priced on an expectation, and an expectation reprices in an afternoon on a headline that loads no vessels. That is why the same week can carry a sharp sell-off and a set of strikes without contradiction.</p>
|
|
449
|
+
<h1>Key takeaways</h1>
|
|
450
|
+
<ul><li>A fence is not a cheaper put. It is a different trade, and the difference is volatility rather than price.</li><li>Into a scheduled report, an option carries an event. The event decays on the calendar whether the number surprises anyone or not.</li><li>Buying a put outright into a report is a long volatility position. A fence is close to flat on volatility, which is the actual reason hedging desks use it.</li><li>In grains the expensive wing is the upside, because supply fails upward. Selling a call to fund a put is selling the dear side, not the cheap one.</li><li>The strike sold because it "will never trade" is the one that costs the most, and it costs it in margin cash while the physical gain is still unrealised.</li></ul>
|
|
451
|
+
<h1>Vocabulary</h1>
|
|
452
|
+
<div class="tablewrap" tabindex="0" role="region" aria-label="Table, scrolls sideways"><table><thead><tr><th>Term</th><th>What it means</th></tr></thead><tbody><tr><td><strong>Collar (fence)</strong></td><td>Buying a put and selling a call against the same position, so the price is bounded on both sides</td></tr><tr><td><strong>Zero-cost fence</strong></td><td>A fence whose strikes are chosen so the call premium received roughly equals the put premium paid</td></tr><tr><td><strong>Effective floor / ceiling</strong></td><td>The strike adjusted by the net premium — the price level at which the hedge actually starts and stops working</td></tr><tr><td><strong>Wing</strong></td><td>An out-of-the-money strike, away from where the market is trading</td></tr><tr><td><strong>Event volatility</strong></td><td>The part of an option's implied volatility that exists only because a dated event falls before expiry</td></tr><tr><td><strong>Vol crush</strong></td><td>The collapse in implied volatility immediately after a scheduled event, which cuts an option's value even when the future has not moved</td></tr><tr><td><strong>Skew</strong></td><td>The difference in implied volatility between equidistant call and put strikes — in grains, usually richer on the call side</td></tr></tbody></table></div>
|
|
453
|
+
<h1>Quiz</h1>
|
|
454
|
+
<p id="q1" class="qq"><strong>Q1.</strong> You are long 30,000 t of physical SRW wheat, unpriced, against December Chicago at 734.00. You fence it: buy the December 720 put for 34 cents and sell the December 800 call for 26 cents. Black Sea diplomacy collapses in October and December wheat gaps to 865.00. What is your total P&L on the fenced position against what it would have been unfenced, and where exactly did the difference go?</p>
|
|
455
|
+
<p id="q2" class="qq"><strong>Q2.</strong> Friday's WASDE prints exactly in line with the trade estimate. December corn opens Monday unchanged. Your long 530 put is worth four cents less than it was on Thursday afternoon. What did you pay for that was not direction?</p>
|
|
456
|
+
<p id="q3" class="qq"><strong>Q3.</strong> You are long Matif December milling wheat against short Chicago December wheat on 30,000 t. The euro falls against the dollar. Which leg of your P&L did you not choose to own?</p>
|
|
457
|
+
<p id="q4" class="qq"><strong>Q4.</strong> No. 11 raw sugar at 17.56 c/lb sits about five cents above Brazilian hydrous ethanol parity of 12.60. Every Center-South mill that can swing to sugar has already swung. What can a further rally in raws actually accomplish?</p>
|
|
458
|
+
<p id="q5" class="qq"><strong>Q5 — conversion drill.</strong> December soybean meal settles at $355.10 per short ton. A Rotterdam buyer quotes in dollars per metric tonne. What is the equivalent, and what is the mental route?</p>
|
|
459
|
+
<hr>
|
|
460
|
+
<hr>
|
|
461
|
+
<h2 id="solutions">Solutions<a class="anchor" href="#solutions" aria-label="Link to this section">#</a></h2><p class="secnote">One reveal per question — check your answer to Q1 without spoiling the rest.</p><div class="solnbar"><button type="button" class="ghost" data-solnall="open">Reveal all</button><button type="button" class="ghost" data-solnall="close">Hide all</button></div>
|
|
462
|
+
<details class="soln" id="a1"><summary><span class="qn">Q1</span><span class="sl">Reveal the answer</span></summary><div class="solnbody"><p>Start with the size. 30,000 t × 36.744 = 1,102,320 bushels, which is 220 lots at 5,000 bushels a lot (220.46, so you would round down and carry the remainder unhedged).</p>
|
|
463
|
+
<p>The net premium is 34 cents paid less 26 cents received, so 8 cents debit. That puts the effective ceiling at 792.00 — the 800 strike less the 8 cents.</p>
|
|
464
|
+
<div class="tablewrap" tabindex="0" role="region" aria-label="Table, scrolls sideways"><table><thead><tr><th></th><th class="num">Unfenced</th><th class="num">Fenced</th></tr></thead><tbody><tr><td>Price captured</td><td class="num">865.00</td><td class="num">792.00</td></tr><tr><td>Gain over 734.00</td><td class="num">131 c/bu</td><td class="num">58 c/bu</td></tr><tr><td>P&L</td><td class="num">$1,444,039</td><td class="num">$639,346</td></tr></tbody></table></div>
|
|
465
|
+
<p>The difference is $804,693. It went to two places, and they add back exactly:</p>
|
|
466
|
+
<div class="tablewrap" tabindex="0" role="region" aria-label="Table, scrolls sideways"><table><thead><tr><th>Component</th><th class="num">Amount</th></tr></thead><tbody><tr><td>Intrinsic value of the short 800 call (65 c/bu)</td><td class="num">$716,508</td></tr><tr><td>Net premium paid (8 c/bu)</td><td class="num">$88,186</td></tr><tr><td>Total</td><td class="num">$804,694</td></tr></tbody></table></div>
|
|
467
|
+
<p>The trap is thinking of that as a cost of insurance. It is not. It is the price of the outcome you were hoping for, sold in advance. And the timing is worse than the number: the $716,508 leaves your account as variation margin day by day as the market rallies, while the physical gain stays unrealised until the wheat is priced. A correct hedge becomes a funding problem — the same failure mode as episode 3, wearing a different costume.</p>
|
|
468
|
+
<p class="backq"><a href="#q1">↑ Back to question 1</a></p></div></details>
|
|
469
|
+
<details class="soln" id="a2"><summary><span class="qn">Q2</span><span class="sl">Reveal the answer</span></summary><div class="solnbody"><p>Event volatility. The implied volatility in that put was carrying Friday's report. Once the report has printed, there is no longer an event between now and expiry, so the implied volatility falls and the option is repriced lower even though the underlying has not moved a tick. This is the vol crush, and it is not a market malfunction — it is the option correctly ceasing to price an uncertainty that has been resolved.</p>
|
|
470
|
+
<p>The lesson underneath it: a bought put into a scheduled report is two positions, a directional one and a long-volatility one. You were right on neither, but you only chose one of them. A fence is the standard answer because the call you sell carries the same event premium as the put you buy, so the crush hits both sides and largely cancels.</p>
|
|
471
|
+
<p class="backq"><a href="#q2">↑ Back to question 2</a></p></div></details>
|
|
472
|
+
<details class="soln" id="a3"><summary><span class="qn">Q3</span><span class="sl">Reveal the answer</span></summary><div class="solnbody"><p>The currency. The Matif leg settles in euros and the Chicago leg in dollars, so a spread that looks like a pure wheat position carries an unhedged FX exposure on the euro leg's full notional. You chose a view on European wheat against American wheat. You did not choose a view on EUR/USD, and on a 30,000 t position the currency move can take a large share of a correct spread call — in episode 16's worked example, €166,800 out of a €457,800 wheat profit. The FX leg is a risk you inherited rather than one you selected, which is the whole distinction worth carrying.</p>
|
|
473
|
+
<p class="backq"><a href="#q3">↑ Back to question 3</a></p></div></details>
|
|
474
|
+
<details class="soln" id="a4"><summary><span class="qn">Q4</span><span class="sl">Reveal the answer</span></summary><div class="solnbody"><p>It can ration demand, and nothing else on the supply side. Above ethanol parity the switch is already spent: every mill with the flexibility to make sugar rather than hydrous is already making sugar, so a higher screen pulls no additional Brazilian tonnes into the sugar pool this season. What a rally can still do is price marginal buyers out — delay purchases, encourage substitution, draw on destination stocks — and pull cane forward from next season only to the extent the crush calendar allows. This is why the shape of the supply response matters more than its direction: the same five cents that would have bought tonnes at 13 buys only demand destruction at 17½.</p>
|
|
475
|
+
<p class="backq"><a href="#q4">↑ Back to question 4</a></p></div></details>
|
|
476
|
+
<details class="soln" id="a5"><summary><span class="qn">Q5</span><span class="sl">Reveal the answer</span></summary><div class="solnbody"><p><strong>conversion drill.</strong> One metric tonne is 1.102 short tons, so a price per short ton becomes a price per tonne by adding about ten percent.</p>
|
|
477
|
+
<p>Mental route: $355.10 → 355 + 35.5 = <strong>$390.50/t</strong>. Exact: 355.10 × 1.102 = <strong>$391.32/t</strong>.</p>
|
|
478
|
+
<p>The reason this one matters is that Chicago soybean meal is the odd contract out — it trades in short tons while the physical meal trade quotes metric. Forgetting costs you ten percent, and ten percent of a meal cargo is not a rounding error.</p>
|
|
479
|
+
<h1>The written edition</h1>
|
|
480
|
+
<p class="backq"><a href="#q5">↑ Back to question 5</a></p></div></details><h2 id="the-trade-nobody-in-the-textbook-puts-on">The trade nobody in the textbook puts on<a class="anchor" href="#the-trade-nobody-in-the-textbook-puts-on" aria-label="Link to this section">#</a></h2>
|
|
481
|
+
<p>You are long 30,000 t of physical corn. That is 1,181,040 bushels, or 236 lots at 5,000 bushels a lot. It is unpriced and unhedged, the board is at 536.75, and there is a WASDE on Friday.</p>
|
|
482
|
+
<p>The textbook answer is to sell futures. Kill the flat price, keep the basis — the whole argument of episode 2. But suppose you do not want to kill it. You think Friday's number is friendly and you would like to own the outcome if you are right.</p>
|
|
483
|
+
<p>The next textbook answer is to buy a put. And this is precisely where a hedging desk does not stop, because a put into a scheduled report is expensive in a specific and knowable way.</p>
|
|
484
|
+
<p>So they build a fence.</p>
|
|
485
|
+
<div class="tablewrap" tabindex="0" role="region" aria-label="Table, scrolls sideways"><table><thead><tr><th>Leg</th><th class="num">Strike</th><th>Premium</th></tr></thead><tbody><tr><td>Buy put</td><td class="num">520</td><td>−18 c/bu</td></tr><tr><td>Sell call</td><td class="num">560</td><td>+17 c/bu</td></tr><tr><td><strong>Net</strong></td><td class="num"></td><td><strong>−1 c/bu</strong></td></tr></tbody></table></div>
|
|
486
|
+
<p>One cent a bushel, or $11,810 on the position. In exchange, the flat price is bounded. Below <strong>519</strong> you cannot lose any more; above <strong>559</strong> you cannot make any more. Both figures are the strike adjusted by the penny of net premium. Forty cents of band for a penny.</p>
|
|
487
|
+
<figure class="chartfig">
|
|
488
|
+
<figcaption class="charttitle">What the fence does to the P&L</figcaption>
|
|
489
|
+
<svg class="chart" viewBox="0 0 640 356" width="100%" preserveAspectRatio="xMidYMid meet" xmlns="http://www.w3.org/2000/svg" role="img">
|
|
490
|
+
<style>.chart{--c-a:var(--accent,#1d4032);--c-b:var(--gold,#a8813c);--c-c:#4a6f8c;font-family:inherit}html[data-theme="dark"] .chart{--c-c:#7ba3c4}.chart .grid{stroke:var(--line,#ddd6c9);stroke-width:1}.chart .axis{fill:var(--ink-soft,#4a4238);font-size:12px}.chart .unit{fill:var(--ink-soft,#4a4238);font-size:11px;letter-spacing:.06em;text-transform:uppercase}.chart .ln{fill:none;stroke-width:2.25;stroke-linejoin:round;stroke-linecap:round}.chart .lg{fill:var(--ink,#16110c);font-size:12.5px}.chart .vlabel{fill:var(--ink,#16110c);font-size:11.5px;font-weight:600}@media (max-width:900px){.chart .axis{font-size:14px}.chart .unit{font-size:13px}.chart .lg{font-size:14.5px}.chart .vlabel{font-size:13.5px}.chart .ln{stroke-width:2.6}}@media (max-width:640px){.chart .axis{font-size:16px}.chart .unit{font-size:14px}.chart .lg{font-size:16px}.chart .vlabel{font-size:15px}.chart .ln{stroke-width:3.1}}</style>
|
|
491
|
+
<line class="grid" x1="56" y1="312.0" x2="622" y2="312.0" opacity=".45"/>
|
|
492
|
+
<text class="axis" x="46" y="316.0" text-anchor="end">-1,500</text>
|
|
493
|
+
<line class="grid" x1="56" y1="263.8" x2="622" y2="263.8" opacity=".45"/>
|
|
494
|
+
<text class="axis" x="46" y="267.8" text-anchor="end">-1,000</text>
|
|
495
|
+
<line class="grid" x1="56" y1="215.6" x2="622" y2="215.6" opacity=".45"/>
|
|
496
|
+
<text class="axis" x="46" y="219.6" text-anchor="end">-500</text>
|
|
497
|
+
<line class="grid" x1="56" y1="167.3" x2="622" y2="167.3"/>
|
|
498
|
+
<text class="axis" x="46" y="171.3" text-anchor="end">0</text>
|
|
499
|
+
<line class="grid" x1="56" y1="119.1" x2="622" y2="119.1" opacity=".45"/>
|
|
500
|
+
<text class="axis" x="46" y="123.1" text-anchor="end">500</text>
|
|
501
|
+
<line class="grid" x1="56" y1="70.9" x2="622" y2="70.9" opacity=".45"/>
|
|
502
|
+
<text class="axis" x="46" y="74.9" text-anchor="end">1,000</text>
|
|
503
|
+
<text class="unit" x="46" y="42" text-anchor="end">$000</text>
|
|
504
|
+
<text class="axis" x="56.0" y="332" text-anchor="middle">470</text>
|
|
505
|
+
<text class="axis" x="150.3" y="332" text-anchor="middle">500</text>
|
|
506
|
+
<text class="axis" x="244.7" y="332" text-anchor="middle">520</text>
|
|
507
|
+
<text class="axis" x="339.0" y="332" text-anchor="middle">536.75</text>
|
|
508
|
+
<text class="axis" x="433.3" y="332" text-anchor="middle">560</text>
|
|
509
|
+
<text class="axis" x="527.7" y="332" text-anchor="middle">585</text>
|
|
510
|
+
<text class="axis" x="622.0" y="332" text-anchor="end">620</text>
|
|
511
|
+
<path class="ln" d="M56.0 243.4 L150.3 209.2 L244.7 186.4 L339.0 167.3 L433.3 140.8 L527.7 112.4 L622.0 72.5" stroke="var(--c-a)"/>
|
|
512
|
+
<circle cx="622.0" cy="72.5" r="3.4" fill="var(--c-a)"/>
|
|
513
|
+
<path class="ln" d="M56.0 187.5 L150.3 187.5 L244.7 187.5 L339.0 168.5 L433.3 142.0 L527.7 142.0 L622.0 142.0" stroke="var(--c-b)"/>
|
|
514
|
+
<circle cx="622.0" cy="142.0" r="3.4" fill="var(--c-b)"/>
|
|
515
|
+
<rect x="56" y="22" width="18" height="3" rx="1.5" fill="var(--c-a)"/>
|
|
516
|
+
<text class="lg" x="81" y="29">Unfenced</text>
|
|
517
|
+
<rect x="153.6" y="22" width="18" height="3" rx="1.5" fill="var(--c-b)"/>
|
|
518
|
+
<text class="lg" x="178.6" y="29">Fenced</text>
|
|
519
|
+
</svg>
|
|
520
|
+
<figcaption class="chartcap">The fence trades the tails for a band. Below 519 the loss stops at $209,635; above 559 the gain stops at $262,781. Everything outside those two levels belongs to somebody else now. <span class="chartsrc">Worked example, episode 17 — 30,000 t of corn, 520 put / 560 call at 1c net debit</span></figcaption>
|
|
521
|
+
</figure>
|
|
522
|
+
<h2 id="friday-three-ways">Friday, three ways<a class="anchor" href="#friday-three-ways" aria-label="Link to this section">#</a></h2>
|
|
523
|
+
<p><strong>The yield is raised and corn breaks to 495.</strong> The physical loses $493,084. The 520 put pays 25 cents of intrinsic, or $295,260. After the penny of premium you are down $209,635 — and that is the worst it gets. At 470 it is the same number. At 450 it is still the same number.</p>
|
|
524
|
+
<p><strong>The yield is cut three bushels and corn runs to 585.</strong> The physical makes $569,852. The 560 call you sold costs you $295,260 of intrinsic. You keep $262,781, and that is the best it gets.</p>
|
|
525
|
+
<figure class="chartfig">
|
|
526
|
+
<figcaption class="charttitle">Where the upside goes at 585</figcaption>
|
|
527
|
+
<svg class="chart" viewBox="0 0 640 330" width="100%" preserveAspectRatio="xMidYMid meet" xmlns="http://www.w3.org/2000/svg" role="img">
|
|
528
|
+
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529
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+
<line class="grid" x1="56" y1="286.0" x2="622" y2="286.0"/>
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530
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+
<text class="axis" x="46" y="290.0" text-anchor="end">0</text>
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531
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+
<line class="grid" x1="56" y1="201.5" x2="622" y2="201.5" opacity=".45"/>
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532
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<text class="axis" x="46" y="205.5" text-anchor="end">200</text>
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533
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<line class="grid" x1="56" y1="117.0" x2="622" y2="117.0" opacity=".45"/>
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534
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<text class="axis" x="46" y="121.0" text-anchor="end">400</text>
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535
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+
<line class="grid" x1="56" y1="32.5" x2="622" y2="32.5" opacity=".45"/>
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536
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<text class="axis" x="46" y="36.5" text-anchor="end">600</text>
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537
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+
<text class="unit" x="46" y="16" text-anchor="end">$000</text>
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538
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+
<text class="axis" x="126.8" y="306" text-anchor="middle">Physical gain</text>
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539
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+
<text class="axis" x="268.2" y="306" text-anchor="middle">Short 560 call</text>
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540
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+
<text class="axis" x="409.8" y="306" text-anchor="middle">Net premium</text>
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541
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<text class="axis" x="551.2" y="306" text-anchor="middle">Kept</text>
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542
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<rect x="89.8" y="45.3" width="74.0" height="240.7" rx="2" fill="var(--c-a)" opacity=".92"/>
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543
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<text class="vlabel" x="126.8" y="38.3" text-anchor="middle">570</text>
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544
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+
<line class="grid" x1="163.8" y1="45.3" x2="231.2" y2="45.3" stroke-dasharray="3 3" opacity=".5"/>
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545
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+
<rect x="231.2" y="45.3" width="74.0" height="124.7" rx="2" fill="#8a3b2f" opacity=".78"/>
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546
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<text class="vlabel" x="268.2" y="38.3" text-anchor="middle">-295</text>
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547
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<line class="grid" x1="305.2" y1="170.0" x2="372.8" y2="170.0" stroke-dasharray="3 3" opacity=".5"/>
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<rect x="372.8" y="170.0" width="74.0" height="5.0" rx="2" fill="#8a3b2f" opacity=".78"/>
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549
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<text class="vlabel" x="409.8" y="163.0" text-anchor="middle">-11.8</text>
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550
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<line class="grid" x1="446.8" y1="175.0" x2="514.2" y2="175.0" stroke-dasharray="3 3" opacity=".5"/>
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551
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+
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552
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<text class="vlabel" x="551.2" y="168.0" text-anchor="middle">263</text>
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553
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</svg>
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554
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+
<figcaption class="chartcap">On the friendly print you keep 46 percent of what the physical made. The call you sold is not a fee — it is the good outcome, sold in advance. <span class="chartsrc">Worked example, episode 17</span></figcaption>
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555
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+
</figure>
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556
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+
<p><strong>The number lands exactly on the estimate and corn opens unchanged.</strong> This is the scenario worth the episode, because on a flat board most people assume nothing happened.</p>
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557
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+
<p>Something happened. The implied volatility in both options was carrying Friday's event, and Friday is now behind them. Implied volatility falls, and both options are marked lower on Monday than they were on Thursday with the future in the same place.</p>
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558
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+
<p>Had you bought the put alone, that is a straight loss on an unchanged market. In the fence, the call you sold was carrying the same event premium, in roughly the same amount. It gets crushed too, and you are short it. The two effects largely cancel.</p>
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559
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+
<p><strong>That is the real reason a hedging desk fences rather than buying puts.</strong> Not that the put is expensive in an absolute sense. That the fence is close to flat on volatility while a bought put is emphatically long it. A hedger wants protection. A hedger does not want a position in how frightened the market will be next Tuesday, because that is a second view, and it is a view they have no edge in.</p>
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560
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+
<h2 id="skew-and-which-wing-is-actually-dear">Skew, and which wing is actually dear<a class="anchor" href="#skew-and-which-wing-is-actually-dear" aria-label="Link to this section">#</a></h2>
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561
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+
<p>The instinct carried over from equity index options is that puts are expensive because crashes are downside. Grains invert it.</p>
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562
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+
<p>A corn crop can fail. It cannot over-succeed by the same magnitude. Supply shocks push the price up, so the fat tail is a rally, and out-of-the-money calls generally carry higher implied volatility than equidistant puts. Selling the 560 call to fund the 520 put is therefore selling the <strong>dear</strong> wing, not the cheap one, which is exactly why a penny buys forty cents of band.</p>
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563
|
+
<p>Skew is also information, and it is one of the cleaner reads available. When call volatility trades well over put volatility, somebody is paying up for upside protection. It is not the farmer — the farmer's fear is a lower price. It is the consumer and the short: the feeder who has to buy, the exporter who has sold cargo they have not bought, the fund that is short into a weather market. Read that way, skew tells you the shape of the fear in the market, not merely its level.</p>
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564
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+
<h2 id="what-the-free-wing-actually-costs">What the free wing actually costs<a class="anchor" href="#what-the-free-wing-actually-costs" aria-label="Link to this section">#</a></h2>
|
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565
|
+
<p>Every hedger who sells a call says the same sentence to themselves, and the sentence is always some version of <em>that strike is never getting touched</em>.</p>
|
|
566
|
+
<p>Suppose it does. December corn at 620 in October, on a Black Sea escalation that nobody had in the model.</p>
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567
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+
<div class="tablewrap" tabindex="0" role="region" aria-label="Table, scrolls sideways"><table><thead><tr><th></th><th class="num">Amount</th></tr></thead><tbody><tr><td>Physical gain at 620</td><td class="num">$983,216</td></tr><tr><td>Fence caps you at</td><td class="num">$262,781</td></tr><tr><td>Handed back</td><td class="num">$720,435</td></tr></tbody></table></div>
|
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568
|
+
<p>Three-quarters of a million dollars of upside, given away for a penny. That is the honest accounting of a "costless" collar, and it is why the word costless does more damage than any other word in hedging.</p>
|
|
569
|
+
<p>But the P&L is the smaller problem. The short call is a futures-style position at the exchange, so it margins daily. The $720,435 goes out of the account in variation margin as the market rallies — real cash, on a real clock — while the physical gain sits unrealised until the corn is priced and shipped. A perfectly correct hedge turns into a funding crisis. Episode 3 made this point about a plain futures hedge; a short option wing makes it sharper, because the loss is unbounded on the side the market is actually moving.</p>
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570
|
+
<h2 id="how-it-gets-quoted">How it gets quoted<a class="anchor" href="#how-it-gets-quoted" aria-label="Link to this section">#</a></h2>
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571
|
+
<blockquote><strong>TRADER:</strong> What do I pay for the 520 / 560 fence, December, 236 lots?<br><strong>BROKER:</strong> I make that a penny, you pay. Call side is bid well.<br><strong>TRADER:</strong> And if I move the call to 570?<br><strong>BROKER:</strong> Then you are paying five and a half. You are buying back the bit you actually want.</blockquote>
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572
|
+
<p>Two things in that exchange. First, neither party quotes a volatility — the fence trades as a single net premium in cents, because that is the number the hedger's committee approves. Second, and more important, the broker's last line is the whole trade in nine words. Moving the call strike up by ten cents costs four and a half cents of premium, because you are repurchasing the upside you had sold. The fence is not free protection. It is a trade in which you fund the bad outcome by selling the good one, and the closer the sold strike sits to where you think the market is going, the more it pays and the more it hurts.</p>
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573
|
+
<section class="glossec"><h2 id="glossary">Glossary<a class="anchor" href="#glossary" aria-label="Link to this section">#</a></h2><p class="secnote">Every unit, convention and desk expression the show had introduced by episode 17. Nothing said in the audio should ever be unrecoverable.</p><details class="gloss"><summary>Open the glossary<span class="sl">265 terms</span></summary><div class="glossbody"><label class="gsearch"><span class="vh">Search the glossary</span><input type="search" id="gfilter" placeholder="Search terms…" autocomplete="off"></label><div class="gchips" role="group" aria-label="Filter by episode"><button type="button" class="gchip on" data-gep="all">All<span class="gn">265</span></button><button type="button" class="gchip" data-gep="1">Ep 1<span class="gn">37</span></button><button type="button" class="gchip" data-gep="2">Ep 2<span class="gn">15</span></button><button type="button" class="gchip" data-gep="3">Ep 3<span class="gn">11</span></button><button type="button" class="gchip" data-gep="4">Ep 4<span class="gn">13</span></button><button type="button" class="gchip" data-gep="5">Ep 5<span class="gn">12</span></button><button type="button" class="gchip" data-gep="6">Ep 6<span class="gn">13</span></button><button type="button" class="gchip" data-gep="7">Ep 7<span class="gn">14</span></button><button type="button" class="gchip" data-gep="8">Ep 8<span class="gn">16</span></button><button type="button" class="gchip" data-gep="9">Ep 9<span class="gn">18</span></button><button type="button" class="gchip" data-gep="10">Ep 10<span class="gn">18</span></button><button type="button" class="gchip" data-gep="11">Ep 11<span class="gn">18</span></button><button type="button" class="gchip" data-gep="12">Ep 12<span class="gn">15</span></button><button type="button" class="gchip" data-gep="13">Ep 13<span class="gn">17</span></button><button type="button" class="gchip" data-gep="14">Ep 14<span class="gn">17</span></button><button type="button" class="gchip" data-gep="15">Ep 15<span class="gn">13</span></button><button type="button" class="gchip" data-gep="16">Ep 16<span class="gn">10</span></button><button type="button" class="gchip" data-gep="17">Ep 17<span class="gn">8</span></button></div><dl id="glist"><div class="gterm" data-ep="8"><dt>45Z</dt><dd>the US clean fuel production credit, one of the two policy levers that sets American soybean oil demand <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="6"><dt>abandonment</dt><dd>planted area never harvested for grain, lost to drought, flood or a switch to silage <span class="gep">ep 6</span></dd></div><div class="gterm" data-ep="2"><dt>ABCD</dt><dd>the four historic majors, Archer Daniels Midland, Bunge, Cargill and Louis Dreyfus <span class="gep">ep 2</span></dd></div><div class="gterm" data-ep="14"><dt>anhydrous ethanol</dt><dd>near-water-free ethanol blended into petrol under a mandate, taking 1.7651 kg of ATR per litre <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="12"><dt>arabica</dt><dd>the high-altitude coffee species, aromatic and acidic, lower-yielding and more fragile, priced on ICE in New York <span class="gep">ep 12</span></dd></div><div class="gterm" data-ep="2"><dt>arb</dt><dd>the full economics of moving a cargo, buy price plus freight and costs against the sale <span class="gep">ep 2</span></dd></div><div class="gterm" data-ep="11"><dt>arb window</dt><dd>the period during which a route's economics work, opening and shutting on freight, differentials and FX rather than on flat price <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="2"><dt>asset-heavy</dt><dd>owning the physical chain, which converts a volatile trading margin into a steadier toll <span class="gep">ep 2</span></dd></div><div class="gterm" data-ep="2"><dt>asset-light</dt><dd>renting elevators, terminals and plants rather than owning them <span class="gep">ep 2</span></dd></div><div class="gterm" data-ep="1"><dt>at</dt><dd>the small word that introduces the offer side (462 bid, at 462 and a half) <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="14"><dt>ATR</dt><dd>Acucar Total Recuperavel or total recoverable sugar, the kilos of sugar recoverable from a tonne of cane, the unit in which Brazilian growers are paid and the unit in which a mill compares sugar against ethanol <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="9"><dt>B50</dt><dd>a blending mandate requiring 50 percent biodiesel in the diesel pool, the level Indonesia moved to in 2026 <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="1"><dt>bag (coffee)</dt><dd>60 kg, how the coffee trade counts volume <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="7"><dt>balance sheet</dt><dd>the one-page supply and demand statement for one crop and one marketing year, built so that supply minus use equals ending stocks and the page closes <span class="gep">ep 7</span></dd></div><div class="gterm" data-ep="15"><dt>bale</dt><dd>the standard unit of cotton statistics, 480 lb net in the United States, so one Cotton No. 2 lot is about 104 bales <span class="gep">ep 15</span></dd></div><div class="gterm" data-ep="10"><dt>Baltic Dry Index (BDI)</dt><dd>the Baltic Exchange headline dry bulk freight index, a weighted composite of the Capesize, Panamax, Supramax and Handysize route assessments <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="16"><dt>bear spread</dt><dd>a calendar position short the nearer month and long the deferred, which profits when the carry widens toward full carry <span class="gep">ep 16</span></dd></div><div class="gterm" data-ep="1"><dt>bid</dt><dd>the price a buyer will pay <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="4"><dt>bill of lading</dt><dd>receipt, contract of carriage and document of title in one, whoever holds it owns the cargo <span class="gep">ep 4</span></dd></div><div class="gterm" data-ep="9"><dt>biomass-based diesel</dt><dd>the RFS category covering biodiesel and renewable diesel made from fats and vegetable oils <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="9"><dt>blend wall</dt><dd>the physical or warranty limit on how much conventional biodiesel an engine or fuel system will tolerate <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="11"><dt>blending</dt><dd>combining lots of different quality so the weighted average meets a contract specification, creating value from material nobody else can use <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="8"><dt>board crush</dt><dd>the processing margin implied purely by futures prices, meal price times 0.022 plus oil price times 0.11 minus the bean price, in dollars per bushel <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="11"><dt>bottleneck asset</dt><dd>a facility with no near substitute at the moment it is needed, whose owner sets the price rather than quoting one <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="16"><dt>bull spread</dt><dd>a calendar position long the nearer month and short the deferred, which profits when the carry narrows or the curve inverts <span class="gep">ep 16</span></dd></div><div class="gterm" data-ep="10"><dt>bunkers</dt><dd>the vessel's fuel, priced separately from the hire and carried by the owner on a voyage charter and by the charterer on a time charter <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="1"><dt>bushel</dt><dd>volume measure standardized into weight, 60 lb for soybeans and wheat, 56 lb for corn <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="1"><dt>bushels per tonne</dt><dd>about 36.7 for soybeans and wheat, 39.4 for corn <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="13"><dt>buyer's call</dt><dd>a price-to-be-fixed contract in which the buyer holds the right to choose the moment of fixation <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="3"><dt>calendar spread</dt><dd>the price difference between two months of the same contract, traded as one instrument at one price <span class="gep">ep 3</span></dd></div><div class="gterm" data-ep="4"><dt>cancelling date</dt><dd>the last day of the laycan, after which the counterparty may cancel <span class="gep">ep 4</span></dd></div><div class="gterm" data-ep="11"><dt>capacity utilisation</dt><dd>the share of storage capacity actually occupied, the best leading indicator of what harvest basis is about to do <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="10"><dt>Capesize</dt><dd>a bulk carrier of about 180,000 dwt and up, too large for the Panama Canal, used mainly for iron ore and coal <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="3"><dt>carry market (contango)</dt><dd>a curve with later months above nearer ones, the market pays for storage <span class="gep">ep 3</span></dd></div><div class="gterm" data-ep="2"><dt>carry-in</dt><dd>stocks left over from the previous season, the starting point of a balance sheet <span class="gep">ep 2</span></dd></div><div class="gterm" data-ep="7"><dt>carryout</dt><dd>ending stocks, the desk's one-word name for what is left at the end of the marketing year <span class="gep">ep 7</span></dd></div><div class="gterm" data-ep="14"><dt>Center-South</dt><dd>the Brazilian sugarcane region running from Sao Paulo through Minas Gerais and Goias, about 90 percent of the national crop and the swing supplier of the world sugar market <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="1"><dt>cents per bushel</dt><dd>Chicago grain quoting unit, 4.39 dollars per bushel is spoken four thirty-nine <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="12"><dt>certified stock</dt><dd>coffee sampled, graded and stamped as deliverable against the futures contract and held in an exchange-licensed warehouse, the deliverable float rather than world inventory <span class="gep">ep 12</span></dd></div><div class="gterm" data-ep="4"><dt>CFR</dt><dd>cost and freight, the seller pays the voyage to a named destination but risk still passes at loading <span class="gep">ep 4</span></dd></div><div class="gterm" data-ep="4"><dt>charter party</dt><dd>the contract hiring the vessel, between charterer and shipowner <span class="gep">ep 4</span></dd></div><div class="gterm" data-ep="4"><dt>CIF</dt><dd>cost insurance and freight, CFR plus the seller buys the marine insurance the buyer would claim on <span class="gep">ep 4</span></dd></div><div class="gterm" data-ep="15"><dt>citrus greening</dt><dd>huanglongbing, the bacterial disease that permanently reduces an infected orange tree's yield and cannot be cured <span class="gep">ep 15</span></dd></div><div class="gterm" data-ep="12"><dt>Coffee C (KC)</dt><dd>the ICE arabica futures contract, 37,500 lb quoted in US cents per pound with a 0.05 cent tick worth 18.75 dollars <span class="gep">ep 12</span></dd></div><div class="gterm" data-ep="17"><dt>collar (fence)</dt><dd>buying a put and selling a call against the same position so the price is bounded on both sides, the standard hedging structure around unpriced physical <span class="gep now">ep 17</span></dd></div><div class="gterm" data-ep="16"><dt>convergence</dt><dd>the pull of a futures price toward the cash value of its deliverable as delivery approaches, which disciplines a calendar spread and has no counterpart across two exchanges <span class="gep">ep 16</span></dd></div><div class="gterm" data-ep="8"><dt>conversion cost</dt><dd>the variable cost of turning beans into products, gas, power, hexane, labour and maintenance, typically 35 to 50 cents a bushel at a modern plant <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="1"><dt>conversion factors</dt><dd>36.7 bushels per tonne for wheat and beans and 39.4 for corn, so cents per bushel times 0.367 or 0.394 gives dollars per tonne <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="13"><dt>cooperative (co-op)</dt><dd>a grower-owned body that pools, mills and markets its members' coffee, and often the counterparty an exporter actually buys from <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="15"><dt>Cotton No. 2</dt><dd>the ICE cotton futures contract, 50,000 lb net weight quoted in US cents per pound, worth 500 dollars a cent and 5 dollars a point <span class="gep">ep 15</span></dd></div><div class="gterm" data-ep="15"><dt>cotton on-call report</dt><dd>the weekly CFTC publication of unfixed on-call sales and purchases by futures month, read as a map of forced order flow rather than as a price forecast <span class="gep">ep 15</span></dd></div><div class="gterm" data-ep="11"><dt>country elevator</dt><dd>the first commercial storage point off the farm, buying from growers and shipping onward by truck, rail or barge <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="9"><dt>CPO</dt><dd>crude palm oil, the unrefined oil pressed from the fruit of the oil palm and the benchmark grade traded internationally <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="7"><dt>Crop Production</dt><dd>the USDA report published alongside WASDE carrying the survey-based yield and area figures <span class="gep">ep 7</span></dd></div><div class="gterm" data-ep="5"><dt>cross-hedge</dt><dd>hedging with a contract that is not your grade or your origin, which removes flat price and adds correlation risk <span class="gep">ep 5</span></dd></div><div class="gterm" data-ep="8"><dt>crush capacity</dt><dd>installed daily processing volume, a physical constraint that cannot be expanded inside a marketing year <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="1"><dt>cwt</dt><dd>hundredweight, 100 lb, the quoting unit for US rice and cattle <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="1"><dt>cwt (hundredweight)</dt><dd>100 lb, the quoting unit for US rice <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="15"><dt>days to liquidate</dt><dd>a position divided by honest daily volume, the sizing measure that replaces a notional limit in a thin market <span class="gep">ep 15</span></dd></div><div class="gterm" data-ep="10"><dt>deadweight (dwt)</dt><dd>the total weight a vessel can carry including cargo, fuel, water, stores and crew, so always more than the cargo she can load <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="3"><dt>Dec over</dt><dd>spread quoting convention that names the expensive leg, December fifteen over means December is 15 cents above the other month <span class="gep">ep 3</span></dd></div><div class="gterm" data-ep="12"><dt>defect count</dt><dd>the number of black, broken, insect-damaged or foreign items in a fixed sample weight, the primary coffee grading measure <span class="gep">ep 12</span></dd></div><div class="gterm" data-ep="1"><dt>deferred</dt><dd>months or shipment windows further out <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="12"><dt>deliverable float</dt><dd>the quantity actually available to settle a futures delivery, which sets how far a front month can travel regardless of world supply <span class="gep">ep 12</span></dd></div><div class="gterm" data-ep="12"><dt>deliverable origin differential</dt><dd>the fixed premium or discount the contract assigns to each approved origin, unchanged whatever the physical market does <span class="gep">ep 12</span></dd></div><div class="gterm" data-ep="12"><dt>delivery notice period</dt><dd>the window in which shorts may tender certified stock against the expiring contract <span class="gep">ep 12</span></dd></div><div class="gterm" data-ep="10"><dt>demand-to-supply ratio</dt><dd>the Baltic measure of tonne-mile demand growth against fleet growth, above 1.0 when cargo is outrunning ships <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="2"><dt>demurrage</dt><dd>the penalty owed when a vessel is held beyond the agreed laytime <span class="gep">ep 2</span></dd></div><div class="gterm" data-ep="4"><dt>despatch</dt><dd>the reward paid when loading beats laytime, customarily half the demurrage rate <span class="gep">ep 4</span></dd></div><div class="gterm" data-ep="14"><dt>destination refinery</dt><dd>a standalone refinery at the consuming end that buys raws on the water and sells whites locally, earning the white premium less its costs rather than a crop margin <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="1"><dt>differential</dt><dd>the premium or discount to a named futures month, as in November plus 80, the negotiated part of a physical quote <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="1"><dt>differential (basis)</dt><dd>the premium or discount to a named futures month, quoted as plus 80 or minus 20 <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="11"><dt>discount schedule</dt><dd>the published table of price deductions for grain outside a contract's grade limits, and the raw material of every blending trade <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="9"><dt>discretionary blending</dt><dd>blending vegetable oil into the fuel pool purely because it is cheaper than gasoil, with no mandate and no subsidy behind it <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="6"><dt>distillers grains</dt><dd>DDGS, the protein co-product of ethanol production, sold back into the feed market <span class="gep">ep 6</span></dd></div><div class="gterm" data-ep="1"><dt>done</dt><dd>the word that seals a trade <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="10"><dt>draft</dt><dd>the depth of hull below the waterline, which rises as the ship loads and is the hard physical limit on which berths and rivers a vessel can enter <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="4"><dt>draft survey</dt><dd>weighing a cargo by reading the ship's displacement before and after loading <span class="gep">ep 4</span></dd></div><div class="gterm" data-ep="8"><dt>draw area</dt><dd>the geographic catchment a crush plant buys its beans from, whose size sets how hard it must bid the local basis <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="5"><dt>durum</dt><dd>the pasta wheat, a separate species with its own thin market <span class="gep">ep 5</span></dd></div><div class="gterm" data-ep="17"><dt>effective ceiling</dt><dd>the call strike less the net premium paid, the price at which a collar stops participating in a rally <span class="gep now">ep 17</span></dd></div><div class="gterm" data-ep="17"><dt>effective floor</dt><dd>the put strike less the net premium paid, the price at which a collar's downside protection actually begins <span class="gep now">ep 17</span></dd></div><div class="gterm" data-ep="11"><dt>elevation margin</dt><dd>the toll an elevator earns for taking grain in, conditioning it and loading it out, separate from any gain on the basis <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="6"><dt>ethanol grind</dt><dd>the rate at which ethanol plants consume corn, which slows when the plant margin turns negative and removes corn demand in steps <span class="gep">ep 6</span></dd></div><div class="gterm" data-ep="14"><dt>ethanol parity</dt><dd>the sugar price at which a mill earns the same per unit of ATR from sugar as from ethanol, the level at which its production decision flips <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="13"><dt>EUDR</dt><dd>the EU deforestation regulation, which from December 2026 requires proof that a shipment's land was not deforested and which splits origin differentials into compliant and non-compliant <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="17"><dt>event volatility</dt><dd>the portion of an option's implied volatility that exists only because a dated event such as a WASDE falls before expiry <span class="gep now">ep 17</span></dd></div><div class="gterm" data-ep="9"><dt>export levy</dt><dd>a tax charged on a commodity leaving the country, used in Indonesia both to discourage exports of crude palm oil and to fund the domestic blending subsidy <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="5"><dt>falling number</dt><dd>the sprout-damage test, a low number demotes milling wheat to feed wheat <span class="gep">ep 5</span></dd></div><div class="gterm" data-ep="9"><dt>FAME</dt><dd>fatty acid methyl ester, the chemical name for conventional biodiesel made by reacting a vegetable oil with methanol <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="13"><dt>farmgate price</dt><dd>what the grower is actually paid at the farm, after the intermediary's margin and inland costs are taken out of the export value <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="15"><dt>FCOJ-A</dt><dd>the ICE frozen concentrated orange juice contract, 15,000 lb of orange solids quoted in US cents per pound <span class="gep">ep 15</span></dd></div><div class="gterm" data-ep="9"><dt>FCPO</dt><dd>the Bursa Malaysia Derivatives crude palm oil futures contract, 25 tonnes per lot, quoted in Malaysian ringgit per tonne with a one ringgit tick <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="7"><dt>feed and residual</dt><dd>the inferred demand line that carries livestock feeding together with every measurement error in the rest of the sheet <span class="gep">ep 7</span></dd></div><div class="gterm" data-ep="6"><dt>feed floor</dt><dd>the price at which feed substitution demand appears under a grain, corn setting the floor under feed wheat <span class="gep">ep 6</span></dd></div><div class="gterm" data-ep="6"><dt>feed wheat</dt><dd>wheat sold on energy and protein rather than milling specification, priced relationally against corn rather than at a flat price <span class="gep">ep 6</span></dd></div><div class="gterm" data-ep="1"><dt>firm</dt><dd>a tradable quote that binds if accepted, often with a time limit <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="13"><dt>first notice day</dt><dd>the first day on which a short futures position may be tendered for delivery, and the practical deadline for rolling a hedge <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="1"><dt>five percent more or less</dt><dd>the contractual tolerance on cargo size, exercised at the seller's option <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="13"><dt>fixation</dt><dd>the act of setting the futures leg of a price-to-be-fixed contract, which converts a differential into a flat price <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="13"><dt>fixation window</dt><dd>the period inside which the fixing party must declare, normally ending before the referenced contract's notice period <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="10"><dt>fixing</dt><dd>agreeing the charter of a specific vessel, the moment a freight exposure stops being open <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="13"><dt>fixing risk</dt><dd>the exposure created by the gap between agreeing a differential and setting the price, carried as market risk by the fixing party and as credit risk by the other <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="1"><dt>flat price</dt><dd>the full outright price level <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="2"><dt>flat price exposure</dt><dd>outright price risk, removed deliberately by hedging so only the basis remains <span class="gep">ep 2</span></dd></div><div class="gterm" data-ep="2"><dt>FOB</dt><dd>free on board, the cargo is priced at the load port with the buyer taking it from the ship's rail <span class="gep">ep 2</span></dd></div><div class="gterm" data-ep="10"><dt>forward freight agreement (FFA)</dt><dd>a cash-settled swap on a Baltic index route or basket over a calendar month, the only liquid way to hedge freight <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="3"><dt>front month</dt><dd>the nearest actively traded contract month, where liquidity is deepest <span class="gep">ep 3</span></dd></div><div class="gterm" data-ep="3"><dt>full carry</dt><dd>storage plus interest per month of holding grain, the practical ceiling on a carry spread <span class="gep">ep 3</span></dd></div><div class="gterm" data-ep="16"><dt>FX leg</dt><dd>the currency exposure that arrives unbidden in an inter-exchange spread whose two legs settle in different currencies <span class="gep">ep 16</span></dd></div><div class="gterm" data-ep="9"><dt>gasoil</dt><dd>the traded middle distillate that diesel prices off, and the reference against which discretionary blending economics are judged <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="10"><dt>geared vessel</dt><dd>a ship carrying its own cranes, which can therefore discharge at a berth with no shore equipment <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="12"><dt>grading</dt><dd>the exchange pass-fail examination of a sample covering defect count, screen size and a clean cup <span class="gep">ep 12</span></dd></div><div class="gterm" data-ep="7"><dt>Grain Stocks</dt><dd>the quarterly USDA survey of physical inventories, from which the feed and residual line is backed out <span class="gep">ep 7</span></dd></div><div class="gterm" data-ep="13"><dt>green coffee</dt><dd>unroasted milled coffee beans, the form in which all internationally traded coffee moves <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="8"><dt>gross processing margin</dt><dd>the industry name for product value minus raw material cost, the crush stated as a margin <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="10"><dt>Handysize</dt><dd>the smallest mainstream dry bulk class at roughly 10,000 to 40,000 dwt, geared and able to work berths larger ships cannot reach <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="5"><dt>hard red spring (HRS)</dt><dd>the 13.5 percent plus Minneapolis wheat bought to lift the protein of a grist <span class="gep">ep 5</span></dd></div><div class="gterm" data-ep="5"><dt>hard red winter (HRW)</dt><dd>the 11 to 12.5 percent bread wheat priced at Kansas City, the US wheat that competes with the Black Sea <span class="gep">ep 5</span></dd></div><div class="gterm" data-ep="11"><dt>harvest basis</dt><dd>the seasonal low in the cash-minus-futures spread, set when a year of crop arrives in six weeks into a pipe sized to move it over twelve months <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="6"><dt>harvested acres</dt><dd>area actually cut for grain, roughly 8 million acres below planted for US corn, and the denominator that yield is quoted against <span class="gep">ep 6</span></dd></div><div class="gterm" data-ep="8"><dt>hexane</dt><dd>the solvent used to extract the last of the oil from the flaked bean, and a real line in the conversion cost <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="1"><dt>hit</dt><dd>your bid was taken by a seller <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="1"><dt>hit the bid</dt><dd>to sell into someone else's bid <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="14"><dt>hydrous ethanol</dt><dd>roughly 95 percent ethanol sold directly at the pump for flex-fuel cars in Brazil, taking 1.6913 kg of ATR per litre <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="14"><dt>ICUMSA</dt><dd>the colour scale for refined sugar, lower being whiter, with the London No. 5 contract requiring 45 ICUMSA or better <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="7"><dt>implied disappearance</dt><dd>use derived by subtraction rather than by measurement, the technique that produces the residual lines of a balance sheet <span class="gep">ep 7</span></dd></div><div class="gterm" data-ep="6"><dt>inclusion rate</dt><dd>the share of a single ingredient in a feed ration, capped by nutrition and by anti-nutritional factors <span class="gep">ep 6</span></dd></div><div class="gterm" data-ep="4"><dt>Incoterms</dt><dd>the standard three-letter trade terms that allocate cost and risk between buyer and seller <span class="gep">ep 4</span></dd></div><div class="gterm" data-ep="1"><dt>indication</dt><dd>a guide price that is not firm <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="3"><dt>initial margin</dt><dd>the deposit the clearing house takes per lot when a position is opened <span class="gep">ep 3</span></dd></div><div class="gterm" data-ep="5"><dt>inter-exchange spread</dt><dd>the price gap between two exchanges pricing related but different goods, such as Kansas City over Chicago <span class="gep">ep 5</span></dd></div><div class="gterm" data-ep="3"><dt>inverse (backwardation)</dt><dd>a curve with nearer months above later ones, the market pays a premium for immediate delivery <span class="gep">ep 3</span></dd></div><div class="gterm" data-ep="8"><dt>joint product</dt><dd>two outputs produced in fixed proportion from one input, so that neither can be made without the other <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="9"><dt>kilolitre</dt><dd>one thousand litres, the volume unit Asian governments state biofuel mandates in, converted to tonnes using the fuel's density of about 0.88 t per cubic metre for biodiesel <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="1"><dt>laycan</dt><dd>the window during which a vessel may present for loading <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="4"><dt>laytime</dt><dd>the contractually allowed time to load or discharge before demurrage begins <span class="gep">ep 4</span></dd></div><div class="gterm" data-ep="16"><dt>leg</dt><dd>one of the individual contracts making up a spread, each executed and margined in its own right <span class="gep">ep 16</span></dd></div><div class="gterm" data-ep="16"><dt>legging in</dt><dd>executing a spread one leg at a time rather than as a single spread order, accepting outright exposure in between in exchange for a better fill <span class="gep">ep 16</span></dd></div><div class="gterm" data-ep="12"><dt>licensed warehouse</dt><dd>a storage facility the exchange approves to hold deliverable stock, at named ports only <span class="gep">ep 12</span></dd></div><div class="gterm" data-ep="1"><dt>lift the offer</dt><dd>to buy from someone else's offer <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="1"><dt>lifted</dt><dd>your offer was taken by a buyer <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="3"><dt>limit move</dt><dd>an exchange-set maximum daily price change, trading pauses beyond it <span class="gep">ep 3</span></dd></div><div class="gterm" data-ep="2"><dt>line-up</dt><dd>the queue of vessels waiting to load at a port, a key driver of origin basis <span class="gep">ep 2</span></dd></div><div class="gterm" data-ep="11"><dt>load-out capacity</dt><dd>how fast an elevator can ship grain out, the lever that decides whether a full house is a crisis or a rotation <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="14"><dt>long ton</dt><dd>2,240 lb, the imperial weight unit the sugar No. 11 contract is still sized in at 50 long tons a lot <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="1"><dt>lot</dt><dd>one futures contract, 5,000 bushels for Chicago grains, the unit desks count positions in <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="13"><dt>managed money</dt><dd>speculative funds reported as non-commercial in exchange positioning data, which trade direction rather than physical <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="15"><dt>market depth</dt><dd>the quantity resting on the book near the touch, which is what determines execution cost rather than headline volume <span class="gep">ep 15</span></dd></div><div class="gterm" data-ep="7"><dt>marketing year</dt><dd>the accounting year a crop is measured in, September to August for US corn and soybeans and June to May for US wheat <span class="gep">ep 7</span></dd></div><div class="gterm" data-ep="5"><dt>Matif milling wheat (EBM)</dt><dd>the Paris contract, 50 tonnes a lot quoted in euros per tonne and delivered into Rouen and Dunkirk <span class="gep">ep 5</span></dd></div><div class="gterm" data-ep="8"><dt>meal contract</dt><dd>CBOT soybean meal, 100 short tons, quoted in dollars per short ton <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="14"><dt>melt loss</dt><dd>the sugar lost between raws in and whites out, roughly six percent, which makes a refiner's break-even white premium a function of the raw price rather than a constant <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="1"><dt>metric tonne</dt><dd>2,204.6 lb, the grain trading weight unit outside the US <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="1"><dt>month codes</dt><dd>F G H J K M N Q U V X Z for January through December, the Z is December <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="7"><dt>NASS</dt><dd>USDA's National Agricultural Statistics Service, the body running the surveys behind the published numbers <span class="gep">ep 7</span></dd></div><div class="gterm" data-ep="12"><dt>natural process</dt><dd>coffee dried with the fruit still attached, giving a sweeter, heavier and more variable cup <span class="gep">ep 12</span></dd></div><div class="gterm" data-ep="13"><dt>net length</dt><dd>a fund category's long positions less its short positions, the number that says how much of a rally is positioning <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="7"><dt>new crop</dt><dd>the marketing year about to begin, priced by the contract months that follow the coming harvest <span class="gep">ep 7</span></dd></div><div class="gterm" data-ep="14"><dt>No. 11</dt><dd>the ICE raw cane sugar futures contract, 112,000 lb quoted in US cents per pound FOB at origin, and the world price of raw sugar <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="14"><dt>No. 5</dt><dd>the ICE London white sugar futures contract, 50 tonnes quoted in US dollars per tonne delivered, and the world price of refined sugar <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="4"><dt>nomination</dt><dd>formally naming the performing vessel under a cargo contract <span class="gep">ep 4</span></dd></div><div class="gterm" data-ep="8"><dt>NOPA</dt><dd>the National Oilseed Processors Association, whose monthly published crush figure makes US soybean crush a measured line rather than an inferred one <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="4"><dt>notice of readiness (NOR)</dt><dd>the master's formal declaration that the vessel has arrived and is ready, it starts the laytime clock <span class="gep">ep 4</span></dd></div><div class="gterm" data-ep="1"><dt>offer</dt><dd>the price a seller will accept <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="8"><dt>oil contract</dt><dd>CBOT soybean oil, 60,000 pounds, quoted in cents per pound <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="8"><dt>oil share</dt><dd>soybean oil's percentage of the combined value of the meal and oil produced from one bushel <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="9"><dt>oil share trade</dt><dd>long soybean oil against short soybean meal, the clean expression of a view on a fuel policy because it isolates relative product value from the bean basis <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="7"><dt>old crop</dt><dd>the marketing year now ending, priced by the contract months before the new harvest arrives <span class="gep">ep 7</span></dd></div><div class="gterm" data-ep="9"><dt>olein and stearin</dt><dd>the liquid and solid fractions palm separates into when refined, sold into cooking oil and into fats respectively <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="15"><dt>on-call purchase</dt><dd>cotton bought by a merchant from a grower with the futures leg left for the seller to fix later, which makes it latent futures selling <span class="gep">ep 15</span></dd></div><div class="gterm" data-ep="15"><dt>on-call sale</dt><dd>cotton sold by a merchant to a mill at an agreed differential with the futures leg left for the buyer to fix later, which makes it latent futures buying <span class="gep">ep 15</span></dd></div><div class="gterm" data-ep="13"><dt>outright</dt><dd>a contract agreed at a flat price rather than as a differential, with no fixation to come <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="10"><dt>P7 and P8</dt><dd>Baltic Panamax route codes for US Gulf to Qingdao and Santos to Qingdao, the two assessments that set the soybean origin arb <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="10"><dt>Panamax and Kamsarmax</dt><dd>the 75,000 to 82,000 dwt workhorse of the grain and coal trades, usually gearless and drawing about fourteen metres fully loaded <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="2"><dt>paper</dt><dd>exchange futures and options, used by a physical desk to hedge rather than to speculate <span class="gep">ep 2</span></dd></div><div class="gterm" data-ep="10"><dt>part cargo</dt><dd>loading a vessel below capacity because the berth, river or canal cannot take her full draft <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="11"><dt>pass-fail specification</dt><dd>a contract term that cannot be met on average, such as contamination, infestation or an unapproved genetic event, where blending increases the affected tonnage instead of diluting it <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="16"><dt>percent of full carry</dt><dd>a calendar spread expressed as a fraction of the interest and storage cost of holding the grain to the later month, the standard way a desk reads how badly a market wants storage <span class="gep">ep 16</span></dd></div><div class="gterm" data-ep="2"><dt>physical (cash)</dt><dd>real cargoes under contract with specs and load windows, as opposed to paper <span class="gep">ep 2</span></dd></div><div class="gterm" data-ep="8"><dt>plant crush</dt><dd>what a physical plant actually earns, the board crush adjusted for bean, meal and oil basis and net of conversion cost <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="6"><dt>planted acres</dt><dd>area sown, the number that moves on farmer decisions and USDA area surveys <span class="gep">ep 6</span></dd></div><div class="gterm" data-ep="1"><dt>point</dt><dd>one hundredth of a cent per pound, how softs desks count moves <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="1"><dt>point (softs)</dt><dd>one hundredth of a cent per pound, so up 300 points means up 3 cents <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="14"><dt>polarisation (pol)</dt><dd>the sucrose purity of a sugar measured by the rotation of polarised light and expressed in degrees, the basis on which raw sugar is priced and settled <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="6"><dt>pollination</dt><dd>the roughly one-week corn window in mid-July in the northern hemisphere after which the ear count is fixed and no forecast can change it <span class="gep">ep 6</span></dd></div><div class="gterm" data-ep="5"><dt>price assessment</dt><dd>a published daily price built by surveying brokers and exporters, used where no futures contract exists <span class="gep">ep 5</span></dd></div><div class="gterm" data-ep="13"><dt>price-to-be-fixed (PTBF)</dt><dd>a physical contract where quantity, quality, shipment and differential are agreed now and the futures price is set later <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="1"><dt>prompt</dt><dd>the nearby month or shipment window, ready to move now <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="5"><dt>protein spec</dt><dd>the contractual protein percentage that turns the word wheat into a price <span class="gep">ep 5</span></dd></div><div class="gterm" data-ep="8"><dt>putting on the crush</dt><dd>buying bean futures and selling meal and oil futures against them in a 10-11-9 lot ratio, which fixes the processing margin <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="5"><dt>quality basis</dt><dd>the spread between the grade you own and the grade the futures contract delivers <span class="gep">ep 5</span></dd></div><div class="gterm" data-ep="6"><dt>ration</dt><dd>the formulated feed mix a mill grinds, in which every ingredient carries an inclusion limit and a substitution price against the others <span class="gep">ep 6</span></dd></div><div class="gterm" data-ep="14"><dt>raws</dt><dd>raw cane sugar, the crystalline product a cane mill exports before refining, traded at 96 degrees polarisation <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="11"><dt>receiving capacity</dt><dd>how fast an elevator can take grain in, in bushels or tonnes per hour, a different constraint from how much it can hold <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="16"><dt>relative value</dt><dd>a position expressing a view on the difference between two prices rather than on the direction of either <span class="gep">ep 16</span></dd></div><div class="gterm" data-ep="9"><dt>renewable diesel</dt><dd>hydrotreated vegetable oil or HVO, a drop-in diesel chemically identical to fossil diesel and not limited by a blend wall, unlike FAME <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="11"><dt>replacement value</dt><dd>what it would cost to buy back today what you have just sold, the test of whether a price was genuinely good <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="2"><dt>residual</dt><dd>a figure obtained by subtraction, such as ending stocks, which absorbs any error in the larger numbers almost in full <span class="gep">ep 2</span></dd></div><div class="gterm" data-ep="13"><dt>retracement</dt><dd>the partial give-back of a price move once the fear that produced it fails to be confirmed <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="8"><dt>reverse crush</dt><dd>the opposite position, short beans and long products, used when a processor expects to idle capacity rather than run it <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="9"><dt>RFS</dt><dd>the US Renewable Fuel Standard, the rule that sets annual minimum volumes of renewable fuel that must be blended into American transport fuel <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="9"><dt>RIN</dt><dd>renewable identification number, the tradable compliance certificate generated with each gallon of renewable fuel, at 1.5 RINs per gallon of biodiesel, which is why a mandate volume must be checked for basis before it is multiplied by a feedstock factor <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="10"><dt>river-sea vessel</dt><dd>a small shallow-draft ship built to work both inland waterways and short sea legs, the only class able to load in the Sea of Azov <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="12"><dt>robusta</dt><dd>the low-altitude coffee species, hardier and higher-yielding, about double the caffeine and a flatter cup, priced in London <span class="gep">ep 12</span></dd></div><div class="gterm" data-ep="12"><dt>robusta contract (RC)</dt><dd>the London robusta futures contract, 10 tonnes quoted in dollars per tonne with a one dollar tick worth 10 dollars <span class="gep">ep 12</span></dd></div><div class="gterm" data-ep="3"><dt>roll</dt><dd>closing a hedge in one month and reopening it further out, executed as a spread trade <span class="gep">ep 3</span></dd></div><div class="gterm" data-ep="13"><dt>roll cost</dt><dd>the gain or loss from moving a hedge to a later month, equal to the spread between the two months and negative for a short hedge in an inverted market <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="15"><dt>rough rice contract</dt><dd>the CBOT rice future, 2,000 hundredweight of long grain rough rice quoted in US dollars per hundredweight <span class="gep">ep 15</span></dd></div><div class="gterm" data-ep="8"><dt>run rate</dt><dd>the share of installed capacity a plant is actually operating at, the lever a crusher pulls when margins move <span class="gep">ep 8</span></dd></div><div class="gterm" data-ep="9"><dt>RVO</dt><dd>renewable volume obligation, the share of the national mandate assigned to an individual refiner or importer <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="6"><dt>safrinha</dt><dd>Brazil's second corn crop, planted February to March into soybean stubble and pollinating April to May, about three quarters of Brazilian corn production <span class="gep">ep 6</span></dd></div><div class="gterm" data-ep="12"><dt>screen size</dt><dd>bean size measured by the mesh it will not fall through, part of the deliverable specification <span class="gep">ep 12</span></dd></div><div class="gterm" data-ep="13"><dt>Section 301</dt><dd>the US statute under which country-specific tariffs are imposed after a trade-practice investigation, applied to Brazilian goods from 22 July 2026 with coffee exempt <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="11"><dt>segregation</dt><dd>keeping identities and grades physically apart in separate bins, the precondition for being able to blend deliberately later <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="13"><dt>seller's call</dt><dd>a price-to-be-fixed contract in which the seller holds the right to choose the moment of fixation <span class="gep">ep 13</span></dd></div><div class="gterm" data-ep="1"><dt>short ton</dt><dd>2,000 lb, used by US soybean meal, about 10 percent lighter than a metric tonne <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="11"><dt>shrink</dt><dd>weight lost when grain is dried to a safe keeping moisture, deducted as a percentage and a real cost to whoever owns the grain <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="17"><dt>skew</dt><dd>the difference in implied volatility between equidistant call and put strikes, in grains usually richer on the call side because supply shocks push price up <span class="gep now">ep 17</span></dd></div><div class="gterm" data-ep="5"><dt>soft red winter (SRW)</dt><dd>the low-protein soft wheat the Chicago contract delivers, used for cakes biscuits and crackers <span class="gep">ep 5</span></dd></div><div class="gterm" data-ep="12"><dt>soluble solids</dt><dd>the share of the coffee bean that dissolves in water, higher in robusta, which is why robusta dominates instant coffee <span class="gep">ep 12</span></dd></div><div class="gterm" data-ep="2"><dt>space time form</dt><dd>the three transformations a merchant is paid for, geography, storage and processing <span class="gep">ep 2</span></dd></div><div class="gterm" data-ep="16"><dt>spread margin credit</dt><dd>the reduction in initial margin an exchange grants a recognised spread, which lowers the cost of a position without lowering its risk per tonne <span class="gep">ep 16</span></dd></div><div class="gterm" data-ep="9"><dt>standing bid</dt><dd>demand that is present regardless of price because it is created by legal obligation rather than by choice <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="15"><dt>state reserve auction</dt><dd>a government selling cotton or grain from its own stockpile into its domestic market, whose clearing rate is read as a signal of domestic tightness <span class="gep">ep 15</span></dd></div><div class="gterm" data-ep="4"><dt>statement of facts</dt><dd>the port log of events both sides use to fight laytime claims <span class="gep">ep 4</span></dd></div><div class="gterm" data-ep="2"><dt>stocks-to-use</dt><dd>ending stocks divided by total use, the market's tension gauge <span class="gep">ep 2</span></dd></div><div class="gterm" data-ep="11"><dt>storage tariff</dt><dd>the published charge for commercial storage, quoted in cents per bushel per month or per day, or in dollars per tonne per month <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="9"><dt>substitution spread</dt><dd>the price gap between two competing vegetable oils, which sets the point at which a refiner reformulates from one to the other <span class="gep">ep 9</span></dd></div><div class="gterm" data-ep="14"><dt>sugar mix</dt><dd>the share of a mill's recoverable sugars turned into sugar rather than ethanol, bounded above by the plant's crystallisation capacity <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="10"><dt>Supramax</dt><dd>a dry bulk vessel of roughly 50,000 to 60,000 dwt, normally carrying its own cranes, working minor bulks and shorter legs <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="11"><dt>temporary storage</dt><dd>ground piles, bunkers and bags used when permanent capacity is full, cheap per bushel to build and expensive per bushel in spoilage and rehandling <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="11"><dt>terminal elevator</dt><dd>large storage at a port, river or rail hub whose business is blending, load-out speed and access rather than farm origination <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="5"><dt>test weight</dt><dd>the density measure telling a miller how much flour comes out of a tonne <span class="gep">ep 5</span></dd></div><div class="gterm" data-ep="15"><dt>thin market</dt><dd>a market in which the price obtainable depends materially on the size being traded, whatever a single lot is worth in notional terms <span class="gep">ep 15</span></dd></div><div class="gterm" data-ep="11"><dt>throughput</dt><dd>the volume moved through a facility in a period, the number that actually pays for a fixed asset because capacity earns nothing standing still <span class="gep">ep 11</span></dd></div><div class="gterm" data-ep="1"><dt>tick</dt><dd>smallest price increment, a quarter cent per bushel in Chicago grains, worth 12.50 dollars per lot <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="3"><dt>ticker</dt><dd>the short screen code a contract is spoken by, ZW wheat, ZC corn, ZS soybeans, ZM meal, ZL oil, KC coffee, SB sugar, CT cotton <span class="gep">ep 3</span></dd></div><div class="gterm" data-ep="10"><dt>time charter</dt><dd>hiring the vessel itself for a period at a price in dollars per day, with the charterer taking speed, weather, port delay and usually fuel <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="10"><dt>time charter equivalent (TCE)</dt><dd>a voyage's economics restated as dollars per day, which is how a shipowner compares one employment against another <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="14"><dt>toll refining</dt><dd>refining someone else's raws for a fee per tonne, which converts the white premium from a trading position into a fixed margin <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="7"><dt>total supply</dt><dd>carry-in plus production plus imports, the top block of a balance sheet <span class="gep">ep 7</span></dd></div><div class="gterm" data-ep="7"><dt>total use</dt><dd>domestic use plus exports, the bottom block of a balance sheet <span class="gep">ep 7</span></dd></div><div class="gterm" data-ep="7"><dt>trade average</dt><dd>the published mean of analysts' pre-report estimates, and therefore the expectation already contained in the price <span class="gep">ep 7</span></dd></div><div class="gterm" data-ep="6"><dt>trend yield</dt><dd>the yield a crop would produce on normal weather, the baseline against which a weather premium is measured <span class="gep">ep 6</span></dd></div><div class="gterm" data-ep="15"><dt>unfixed</dt><dd>the state of a price-to-be-fixed contract whose futures leg has not yet been set, so the exposure is still outright <span class="gep">ep 15</span></dd></div><div class="gterm" data-ep="3"><dt>variation margin</dt><dd>the daily cash settlement of a position mark to market, paid the same day <span class="gep">ep 3</span></dd></div><div class="gterm" data-ep="14"><dt>VHP</dt><dd>very high polarisation raw sugar of around 99 degrees, the grade Brazil exports and which trades at a premium to the No. 11 screen <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="17"><dt>vol crush</dt><dd>the collapse in implied volatility immediately after a scheduled event, which marks an option lower even when the underlying future has not moved <span class="gep now">ep 17</span></dd></div><div class="gterm" data-ep="10"><dt>voyage charter</dt><dd>hiring a vessel to move a stated cargo between named ports for a price in dollars per tonne, with the owner carrying the voyage and delay risk <span class="gep">ep 10</span></dd></div><div class="gterm" data-ep="2"><dt>war-risk premium</dt><dd>an insurance surcharge on a vessel's hull value for sailing into a conflict zone, quoted as a percentage <span class="gep">ep 2</span></dd></div><div class="gterm" data-ep="1"><dt>WASDE</dt><dd>the USDA monthly World Agricultural Supply and Demand Estimates report <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="1"><dt>washed out</dt><dd>offsetting trades cancel each other and only the price difference is settled <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="12"><dt>washed process</dt><dd>coffee with the fruit stripped off before drying, giving a cleaner and more consistent cup <span class="gep">ep 12</span></dd></div><div class="gterm" data-ep="1"><dt>washout</dt><dd>cancelling two offsetting physical contracts by settling the price difference instead of shipping <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="6"><dt>weather premium</dt><dd>the gap between where a crop trades and where it would trade at trend yield, the price of a distribution of outcomes rather than of a forecast <span class="gep">ep 6</span></dd></div><div class="gterm" data-ep="4"><dt>weather working day</dt><dd>a laytime day that counts only when weather permits cargo work <span class="gep">ep 4</span></dd></div><div class="gterm" data-ep="16"><dt>wheat-corn spread</dt><dd>the price difference between wheat and corn futures, read as the distance wheat must still fall before feeders substitute it into a ration <span class="gep">ep 16</span></dd></div><div class="gterm" data-ep="7"><dt>whisper number</dt><dd>the expectation the market is actually trading into a report, which can sit away from the published trade average <span class="gep">ep 7</span></dd></div><div class="gterm" data-ep="14"><dt>white premium</dt><dd>the London white sugar price less the New York raw sugar price converted to the same unit, which is what the market pays for the act of refining <span class="gep">ep 14</span></dd></div><div class="gterm" data-ep="17"><dt>wing</dt><dd>an out-of-the-money strike away from where the market is trading, the part of the curve a hedger buys or sells rather than the at-the-money <span class="gep now">ep 17</span></dd></div><div class="gterm" data-ep="1"><dt>work</dt><dd>leave an order resting with a broker <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="1"><dt>work an order</dt><dd>leave an order resting at your price and wait <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="1"><dt>workable</dt><dd>the quoted price is negotiable <span class="gep">ep 1</span></dd></div><div class="gterm" data-ep="17"><dt>zero-cost fence</dt><dd>a collar whose strikes are chosen so the call premium received roughly offsets the put premium paid, leaving a small net debit or credit <span class="gep now">ep 17</span></dd></div></dl><p class="gnone" hidden>No term matches that.</p></div></details></section>
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<a class="epprev" href="ep16.html"><span class="dir">← Previous</span><span class="ept">Spreads: Calendar, Inter-Commodity, Inter-Exchange</span><span class="epn">Episode 16</span></a>
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<details class="archive"><summary>All episodes<span class="sl">17 so far</span></summary><ol class="arclist"><li><a href="ep01.html"><b>01</b> The Units and the Language of the Desk</a></li><li><a href="ep02.html"><b>02</b> What a Merchant Does, and Why Basis Is the Whole Game</a></li><li><a href="ep03.html"><b>03</b> Futures Plumbing and the Shape of the Curve</a></li><li><a href="ep04.html"><b>04</b> The Physical Chain, End to End</a></li><li><a href="ep05.html"><b>05</b> Wheat: The Map and the Screens</a></li><li><a href="ep06.html"><b>06</b> Corn, Crop Calendars and Weather Risk</a></li><li><a href="ep07.html"><b>07</b> WASDE and Building a Balance Sheet</a></li><li><a href="ep08.html"><b>08</b> The Soybean Complex and the Crush</a></li><li><a href="ep09.html"><b>09</b> Vegetable oils and biofuels</a></li><li><a href="ep10.html"><b>10</b> Freight: Dry Bulk and Chartering</a></li><li><a href="ep11.html"><b>11</b> Storage, Elevation and Trade Flows</a></li><li><a href="ep12.html"><b>12</b> Coffee: The Market</a></li><li><a href="ep13.html"><b>13</b> Coffee: Differentials, PTBF and Volatility</a></li><li><a href="ep14.html"><b>14</b> Sugar: Two Contracts, the Switch and the Refiner</a></li><li><a href="ep15.html"><b>15</b> Cotton, Rice and Juice</a></li><li><a href="ep16.html"><b>16</b> Spreads: Calendar, Inter-Commodity, Inter-Exchange</a></li><li class="here" aria-current="page"><a href="ep17.html"><b>17</b> Options: The Fence, the Vol Crush and the Wing You Sold</a></li></ol></details>
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function openTarget(){
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|
658
|
+
var id = location.hash.slice(1);
|
|
659
|
+
if(!id) return;
|
|
660
|
+
var el = document.getElementById(decodeURIComponent(id));
|
|
661
|
+
while(el){
|
|
662
|
+
if(el.tagName === 'DETAILS') el.open = true;
|
|
663
|
+
el = el.parentElement;
|
|
664
|
+
}
|
|
665
|
+
}
|
|
666
|
+
addEventListener('hashchange', openTarget); openTarget();
|
|
667
|
+
|
|
668
|
+
/* glossary: an episode chip and a search box, which compose */
|
|
669
|
+
var gf = document.getElementById('gfilter'), list = document.getElementById('glist');
|
|
670
|
+
if(list){
|
|
671
|
+
var rows = [].slice.call(list.querySelectorAll('.gterm'));
|
|
672
|
+
var chips = [].slice.call(document.querySelectorAll('.gchip'));
|
|
673
|
+
var none = document.querySelector('.gnone');
|
|
674
|
+
var pick = 'all';
|
|
675
|
+
function apply(){
|
|
676
|
+
var q = gf ? gf.value.trim().toLowerCase() : '', hits = 0;
|
|
677
|
+
rows.forEach(function(r){
|
|
678
|
+
var on = (pick === 'all' || r.dataset.ep === pick) &&
|
|
679
|
+
(!q || r.textContent.toLowerCase().indexOf(q) > -1);
|
|
680
|
+
r.hidden = !on; if(on) hits++;
|
|
681
|
+
});
|
|
682
|
+
if(none) none.hidden = hits > 0;
|
|
683
|
+
}
|
|
684
|
+
if(gf) gf.addEventListener('input', apply);
|
|
685
|
+
chips.forEach(function(c){
|
|
686
|
+
c.addEventListener('click', function(){
|
|
687
|
+
pick = c.dataset.gep;
|
|
688
|
+
chips.forEach(function(o){ o.classList.toggle('on', o === c); });
|
|
689
|
+
apply();
|
|
690
|
+
});
|
|
691
|
+
});
|
|
692
|
+
}
|
|
693
|
+
|
|
694
|
+
/* printing: paper has no disclosure triangles */
|
|
695
|
+
var reopen = [];
|
|
696
|
+
addEventListener('beforeprint', function(){
|
|
697
|
+
reopen = [].filter.call(document.querySelectorAll('details'), function(d){
|
|
698
|
+
return !d.open;
|
|
699
|
+
});
|
|
700
|
+
reopen.forEach(function(d){ d.open = true; });
|
|
701
|
+
});
|
|
702
|
+
addEventListener('afterprint', function(){
|
|
703
|
+
reopen.forEach(function(d){ d.open = false; });
|
|
704
|
+
reopen = [];
|
|
705
|
+
});
|
|
706
|
+
})();
|
|
707
|
+
</script>
|
|
708
|
+
</body>
|
|
709
|
+
</html>
|
package/ep17_chart1.png
ADDED
|
Binary file
|
package/ep17_chart2.png
ADDED
|
Binary file
|
package/ep17_chart3.png
ADDED
|
Binary file
|
package/package.json
CHANGED