I don't quite understand how the pricing for wheat futures works. Supposedly, for Chicago SRW, the contract is for 5000 bushels. So a call would allow me to buy 5000 bushels, but at what price? What is the strike price?
When I look at the quotes for SRW it says that the July '18 contract is currently trading at about $520. So, what exactly does this mean? I know that wheat typically sells for around $5 per bushel, so 5000 bushels would be about $25,000 or so. So, I can buy $25,000 in wheat for $520 ??? That makes no sense.
Also, where is the price for bushel? All the quoting sites I can find simply list the future contract prices, they don't seem to list the actual price for the wheat itself. Where do I find that?