HRC futures: Navigating HRC market depth

Much discussion has centered on HRC futures and option liquidity. The perceived lack of liquidity is often used as a reason for not engaging in risk management, a profound folly in our opinion.

In its early years, the CME HRC futures market faced challenges in establishing liquidity and attracting participants. However, as industries increasingly recognized the importance of managing price risk, trading volumes began to rise. The exchange implemented measures to enhance market structure, such as introducing standardized contracts and improving clearing processes.

Logan Davis

Logan Davis is the business development manager for the metals team at Commodity & Ingredient Hedging (CIH). He worked with CIH for five years on the client services side before returning to his family’s dairy operation to manage their commodity price risk along with the CIH dairy team. He has returned to present prospective metals clients with solutions to their price risk via CIH’s tools and services. Having been both a consultant and a client, Logan has a unique perspective on markets, risk, and the obstacles that both consultants and clients can encounter. Logan holds a Series 3 License.