Sugar No. 11

Just noticed that there's basically zero volume in the Jan10 sugar futures. The spread is also insanely wide.

I guess I won't bother asking why...

But just to be clear, that means the November/December serial options are all based on the Jan underlying, yes?

Actually... now I'm confused. I just looked at ICE settlement numbers.

https://www.theice.com/publicdocs/futures_us_reports/sugar/sb 9-16-09.pdf

It shows underlying for the X9 options at settling at 24.00. That's definitely not the Jan10 sugar future price... that looks like the Mar10 sugar future price. (The Jan/Feb options also show underlying at $24.00).

Strange. Anyone have insight? I'll fire an email off to ICE as well.
 
They are based on March 10 sugar, if you're going to trade sugar trade that month, nobody cares about Jan sugar except Jan options. It's all about where the oi and volume is. Same deal with Oct Cotton. This isnt crude oil where every month has deep liquidity.
 
Quote from grg03002:

They are based on March 10 sugar, if you're going to trade sugar trade that month, nobody cares about Jan sugar except Jan options. It's all about where the oi and volume is. Same deal with Oct Cotton. This isnt crude oil where every month has deep liquidity.
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Hi,

I feel strongly that's the case... but I'd love to find some confirmation. Did you find this anywhere on the site? Only thing remotely relevant that I found is the statement Jan10 is the last Jan future option they plan on listing.

ICE help desk is completely silent on this in resonse to emails, don't know what's going on. They were pretty prompt in getting back to me earlier.

I'll have to give'em a call later.
 
Talked to Paul @ ICE market supervision / settlement. After some research, he confirmed all serial options (Nov/Dec/Jan) all have the March 10 future underlying.
 
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