From CME Group:

Ethanol production facilities often contract cash corn basis with farmers, but may leave the futures component unpriced. To manage the risk of an unfavorable futures spread, facilities can buy CSO puts to protect against losses if nearby futures become cheaper relative to deferred futures, ensuring they can roll long hedges forward at a predetermined price.



Read more: Introduction to CME Group Calendar Spread Options on Grains and Oilseed Products