Understanding how to utilize the futures market can be a lot for producers to wrap their heads around.
Makenzie Billings, manager, agricultural and alternative investment products, says the CME Group has developed tools to participants better navigate the volatility in the markets. “And give them a little more comfort level when making decisions on when to place hedges, how to place hedges, and things of that nature,” she says.
She tells Brownfield the CME Group Volatility Index (CVOL) measures the expected risk of a futures contract, like live cattle. “You will be provided with a chart where you can see volatility along with the underlying price,” she says.