Corn futures provide a highly liquid market for trading positions with an average daily trade volume of around 350,000.
Market participants leverage the benefits of trading corn futures. This advantage is especially beneficial for hedgers who are not obligated to provide the full capital amount of the contract to place the hedge. Moreover, the leverage also attracts market speculators with a high tolerance for risk.
On our website, you can access corn futures charts, export sales, and inspection reports, or subscribe to receive them via email. If trading corn futures aligns with your goals, get started opening your account today.
The global production of Corn is estimated to be 1.172 BMT. The largest Corn producer is the United States with an estimated production of 354 MMT, followed by China at 274 MMT, Brazil at 126 MMT, the EU at 58.8 MMT, and Argentina at 55 MMT.
In the Northern Hemisphere, growing seasons typically begin in April/May and end with harvest in Sep/Oct/Nov. In Brazil, the first crop is planted from September through December. Additionally, Brazil plants corn after the soybean harvest, with the “Safrinha” crop being planted from December to March and harvested from February through August.
The total global demand for corn is estimated at 1,180 MMT. The United States is the world’s largest consumer of Corn with an estimated usage of 304.8 MMT. The second largest consumer is China at 295 MMT, followed by the EU at 77.4 MMT,
World ending stocks for corn are estimated at 304.5 MMT. The largest ending stocks are held in China at an estimated 207 MMT. Second, the largest ending stocks are held in the U.S. at an estimated 30.9 MMT
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If you want to either buy, sell, or speculate in price futures, it’s good to know that it’s a CFTC-regulated contract on the CBOT. It’s not just one of the most traded softs commodities but one of the top 5 traded commodity futures overall.
The United States is a massive producer of the commodity, which is most commonly used to feed livestock and poultry. However, corn has other uses than those and is included in a lot of food.
It includes the following and more:
It’s also used to produce ethanol fuel and adhesives.
Contracts contain 5,000 bushels per contract, and they’re traded on various platforms from 8:00 pm to 2:20 pm US ET.
| Contract Symbol | Price Quotation | Contract Unit |
| ZC | cents per bushel | 5,000 bushels |
| Trading Exchange | Tick Value | Trading Hours |
| CME GLOBEX | 1/4 cent = $12.50 | 8:30 – 13:20, 19:00 – 7:45 |
The commodity is not just traded by producers and consumers but also by speculators that want to speculate on the movement in price. It can be used to either hedge or diversify portfolios when trading asset classes where prices correlate with that of corn.
The price of the commodity is affected by many different things, including the following:
Trading corn futures does not come without risk, and it’s important you understand that before you get started. You can take advantage of market opportunities outside of trading hours if you suspect the commodity’s price is moving in a certain direction.
If a producer expects the price of corn to move up in the future, he would be reluctant to set the price now. However, if he expects the price to go down in the future, he would lock in the contract price now to ensure as high of a price as possible.
Leverage can be used to trade the asset, which allows greater returns and losses, speculating on the price of the underlying asset. Using leverage to trade corn futures does not come without risk, and losses can exceed the original investment if stop losses are not used. For that reason, leverage may not be the right instrument for all traders.
With corn being the country’s first domesticated and largest crop, the ability to trade it on a regulated exchange provides opportunities for all parties involved in the trade. As you’re trading, it’s important to keep up with corn futures news to know what is going on and how it might affect the price.
As a contract buyer, you agree to take the delivery from a seller at a determined price and quantity at a determined future delivery date. It could 50 tonnes.
Corn futures are traded on the following exchanges:
To be able to trade the commodity using leverage, you’ll need to maintain a margin. On the CBOT, the margin is $1,350.
The Prospecting Plantings report is produces and released by the United State Department of Agriculture. It outlines the quantity of crops that will be planted by farmers. The Monthly Crop Production report estimates demand and supply in the months that follow.
When you’re ready to get started trading corn futures, Paradigm Futures is ready to help you out.
It was not before the mid-1880s that the crop started being traded in Chicago and has been called “other yellow gold.” Its versatile uses have made it a valued commodity around the world. It’s a native grain of the American continent and one which we have a rich history of producing.
Serving both as food, energy, and currency, it’s no wonder it’s widely appreciated.
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Corn🔹(G+E%) 55 -6% WoW Soybeans🔹(G+E%) 54 -5% WoW Spring Wheat🔹(G+E%) 51 -9% WoW Winter Wheat🔹(G+E%) 38 +0% WoW Export Inspections Corn- 877,310 MT Corn inspections
Corn🔹273,255 MT Soybeans🔹478,368 MT Wheat 🔹164,978 MT Corn Exports of 1,192,600 MT were down 4 percent from the previous week and 10 percent from the prior
Corn🔹(G+E%) 61 -3% WoW Soybeans🔹(G+E%) 59 -3% WoW Spring Wheat🔹(G+E%) 60 -4% WoW Winter Wheat🔹(G+E%) 38 +2% WoW Crop conditions face concerns about continued dryness
June WASDE Supply and Demand Corn Supply/Use ⬆️15.58 Soybeans Supply/Use ⬆️7.93 Wheat ⬆️30.59
Export Inspections shows Wheat get a rough start to the MY. Corn💠96% Planted Soybeans💠91% Planted Spring Wheat 💠93% Planted Winter Wheat Heading💠82% Corn Export Inspections
Wheat Posts Another Net Negative. Corn💠 186,695 MT Soybeans💠123,396 MT Wheat 💠-165,396 MT Export commitments are 35.6% behind a year-ago compared to 35.4% behind last week.
Corn and Wheat Post NET Negative Sales Soybeans Sputter Corn💠- 338,974 MT Soybeans💠16,950 MT Wheat 💠-42,198 MT
Corn and Soybeans Outpace 5-year Average Corn💠65% Planted Soybeans💠49% Planted Spring Wheat 💠40% Planted Winter Wheat Heading💠49% Todays’ Crop Planting Progress report shows a slight
Corn💠1,173,783 MT Soybeans💠147,897 MT Wheat 💠242,269 MT
Ending Stocks Corn💠2,222 MMT (est 2105M; prev 1342M) Soybeans💠335 MMT (est 292M; prev 210M) Wheat 💠556 MMT (est 608M; prev 598M) CORN USDA has released
Exchange: Chicago Board of Trade
Exchange Symbol: ZC
Tick Size: ¼ cent per bushel ($12.50 per contract)
Contract Size: 5000 bushels
Months: Mar, May, Jul, Sep, Dec (H, K, N, U, Z)
Trading Hours: 7:00 p.m. – 7:45 a.m. (night) 8:30 am – 1:20 pm (1:15pm Settle) Sun-Fri CST
Margin/Maintenance: $2970/2700
By possessing these seven key attributes, aspiring commodity brokers can increase their chances of success in this challenging yet potentially...
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