Direct answer: The settlement price is the official end-of-day price an exchange sets for each futures contract, while the last price is simply the final trade of the session. They can differ because the settlement is calculated from trading in a short window near the close, not from the very last tick. The Daily Board quotes the settlement, because it is the number positions are marked to and the one daily changes are measured from.
How the settlement is set
Exchanges do not take the last trade and call it the close. They define a settlement period and a method.
CBOT grains and KC wheat: CME sets daily settlements for corn, soybeans, soybean meal, soybean oil, Chicago wheat, oats and Kansas City wheat from trading on CME Globex between 1:14:00 and 1:15:00 p.m. Central. For the lead month, the settle is the volume-weighted average price of outright trades in that minute, rounded to the nearest tick.
Deferred months: the other contract months are settled mostly through calendar spread trades against the lead month, not their own last trade.
ICE canola: ICE lists the canola settlement window as 2:14 to 2:15 p.m. New York time, the same minute as 1:14 to 1:15 p.m. Central.
If a contract does not trade in the window, the exchange falls back on rules that use the bid, the ask, the last trade or the prior settlement. The details are in each exchange's published settlement procedures.
Why the two numbers drift apart
Three common reasons:
Averaging: a volume-weighted average over a minute will rarely match the single trade at the end of that minute.
Post-settlement trading: some markets keep trading after the settlement window or reopen in an evening session. A quote screen that shows "last" may be showing a trade from after the settle, or from the next session.
Thin months: deferred contracts can go most of the day without trading. Their last trade may be hours old, while the settlement reflects where the spread to the lead month closed.
Energy is a frequent trap. A quote page can show a WTI crude price that is a post-settlement trade rather than the official settle, and the two can be noticeably apart on a volatile day.
Why The Daily Board uses the settle
The settlement is the exchange's official number. It is what brokers use to mark accounts, what most closing-price reports print, and what the next day's change is measured from. Quoting it keeps every number on The Board comparable from one edition to the next.
For you, it means the canola close in the Board lines up with what your marketing advisor or grain buyer calls the close. A screenshot of a quote page taken at supper time may not.
When a settle is not available yet
The Daily Board is written after the grain markets close but sometimes before every exchange has published its official settlement. When a figure is the best available print but not yet the final settle, it carries a dagger (†). Treat the direction and rough size of the move as usable; do not quote the exact number as the official close. The next edition carries the official settle if it differs.
Frequently asked questions
What is a futures settlement price?
The official end-of-day price the exchange sets for each contract. It is used to mark positions to market and to measure the daily change, and it is the number to cite as the close.
Why is the settlement different from the last trade?
The settlement is calculated from trading in a short window near the close, such as a volume-weighted average, while the last trade is simply the final tick. Trading after the window can also move the last price away from the settle.
When are grain and canola futures settled?
CME sets the daily settlement for CBOT grains and KC wheat from trading between 1:14 and 1:15 p.m. Central. ICE lists the canola settlement window as 2:14 to 2:15 p.m. New York time, which is the same minute in Central time.
Which price does The Daily Board use?
The official settlement wherever it is available. Daily changes are measured settle to settle. A figure that was not yet the final settle when the edition closed is marked with a dagger.
