Global commodity markets are influenced by a range of factors, including policy decisions and geopolitical events. From the oil fields of the Middle East to the wheat farms of the American Midwest and the steel mills of industrial heartlands, a common trend is emerging: Uncertainty is driving a new era of proactive risk management. H1 2025 (and Q2 2025) showed record levels of ADV across the entire commodities portfolio at 5.8 million and 6 million respectively.
Geopolitical dynamics are adding complexity to the crude oil market, making OPEC meetings key events. In the week ahead of the most recent OPEC meeting on August 3, WTI Weekly options traded 117,963 contracts (compared to ADV of 23,588 and ADOI of 46,269). Traders can use OPEC Watch to track outcome probabilities ahead of the next meeting on September 7, and hedge their risk with cost-effective WTI Crude Oil Weekly options using the Friday (LO1) and Monday (ML1) contracts for precise positioning.
To manage price uncertainty from global trade policies, market participants can use Hard Red Spring (HRS) Wheat futures and options. Futures can hedge a sale price against a market downturn, while options can establish a minimum price, protecting against downside risk while retaining upside potential.
Amid price uncertainty from tariffs, the steel industry is increasingly using Hot-Rolled Coil (HRC) Steel futures to manage risk. This has led to a notable increase in trading volume and open interest, boosting liquidity in the HRC futures market.
Market participants are increasingly turning to futures and options not just as speculative instruments, but as essential tools for risk management.
Read More: July 2025 Commodities Update – CME Group
