Wheat call options give a buyer exposure to rising futures prices. Follow one contract from premium paid to its result at expiration.
How wheat options work
The examples use options on Chicago soft red winter wheat futures. A call gives the right to enter a long futures position at the strike price. A put gives the right to enter a short futures position at that price.
A flour mill may buy wheat calls, but it must match the wheat class to its purchases. A bread-wheat hedge may not track Chicago wheat perfectly.
The cost of one option
One CBOT contract represents 5,000 bushels. The exchange quotes this product in cents per bushel; the examples convert those quotes into dollars. A premium of 25 cents equals $0.25 per bushel. At a premium of $0.25 per bushel, one option costs $1,250 ($0.25 × 5,000).
Assume the futures price and strike are both $6 per bushel. The call and put premiums are each $0.25 for comparison, not current quotes. Results below are at expiration, before fees, with any futures position from exercise immediately closed at the stated price.
Buying wheat calls
Suppose you expect wheat prices to rise and buy one $6 call for $1,250.
If the underlying future reaches $6.75 per bushel at expiration, buying at $6 gives an advantage of $0.75 per bushel. Across 5,000 units, that is $3,750. After the premium, your net profit is $2,500.
At $6 or below, the call expires worthless and the loss is $1,250. Breakeven is $6.25 per bushel: strike plus premium. At $6.125, the call has value but still loses $625 after its cost.
Before expiration
An option can be sold to close before expiration when a market is available. Its price then includes the effect of remaining time and implied volatility, so an earlier trade need not break even at the expiration price calculated above.
The purchased option can lose its whole premium. Exercise can create a futures position requiring margin and exposing you to further gains or losses. An uncovered seller can lose more than the premium received.
Wheat price chart
OANDA Wheat CFD reference price. This broker CFD (contract for difference) is a market reference, not a spot price or an exchange futures contract. Prices and quoting units may differ from the contracts described in this guide. Check the widget timestamp and market status; prices may be delayed.
References
Official contract information. Examples are hypothetical and exclude fees. Contract information checked 14 September 2026.