The Chicago Mercantile Exchange will launch trading in fertilizer futures and options on Sunday, June 6 at 5 p.m., CDT. The contracts are based on three of the most commonly used fertilizers and will trade exclusively on CME's GLOBEX electronic trading platform. The three fertilizers are: diammonium phosphate (or DAP), which is 18 percent nitrogen and 46 percent phosphate; urea, which is 46 percent nitrogen; and urea ammonium nitrate (or UAN), which is 32 percent nitrogen. Combined, these products have annual U.S. sales of $4 billion to $6 billion.
Contracts will be 100 tons each with expirations listed in March, May, July, September and December. Minimum price movement will be 50 cents per ton. Contracts will expire on the last business day prior to the 16th calendar day of the contract month. Options will expire on the first Friday of each contract month. Contracts will trade Sunday through Thursday from 5 p.m. to 3:15 p.m. the following day. On expiration days, trading will cease at noon.