Corn futures are CFTC-regulated, exchange-traded contracts on the Chicago Board of Trade
Chicago Board of Trade
The Chicago Board of Trade, established on April 3, 1848, is one of the world's oldest futures and options exchanges. On July 12, 2007, the CBOT merged with the Chicago Mercantile Exchange to form CME Group. CBOT and three other exchanges now operate as designated contract markets of t…
How to buy corn futures?
How to Buy Corn Futures. Open Account. Corn is one of the most highly traded commodities globally. Corn prices are affected by weather and global demand for ethanol. Trading corn futures contracts is suitable for both fundamental and technical trading strategies. Corn is one of the most highly traded commodities in the world because of its liquidity and the opportunities to take advantage of price movements.
What are corn futures trading hours?
Trading hours for CME Group corn, soybeans, and wheat futures contracts will now encompass 21 hours of the day, up four hours from the traditional 17 hours. The four hour expansion impacts only electronic trading, not open outcry trading.
How many bushels of corn in futures contract?
The original corn futures or forward contract was for 3000 bushels instead of the 5000 bushel contract of today. Back then the exchange membership fees were $3 instead of the 6 and 7 figure costs for exchange seats today. The Chicago Board of Trade is the premiere corn future trading exchange in the world today.
What is the current price for corn?
Corn Price Price; 1 Bushel ≈ 0,035 m³ Corn Price Per 1 m³ 232.13 USD Corn Price Per 1 Liter 0.23 USD
What is the futures price of corn?
FuturesAGRICULTURELAST% CHGCorn679.75-0.15%Wheat830.250.12%Soybeans1400.00-0.02%Soybean Oil71.840.07%2 more rows
What are corn futures traded in?
Corn Futures are traded at the Chicago Board of Trade (CBOT), NYSE Euronext (Euronext) and Tokyo Grain Exchange (TGE). Commodities are traded based on margin, and the margin changes based on market volatility and the current face value of the contract.
What are futures in grain?
Grain futures are contracts for the delivery of grains or grain products at a specified date at an already agreed-upon price. Grain futures are an essential part of the market for agricultural goods because they allow farmers to lock in their prices before their crop is harvested.
What are futures in agriculture?
Farmers use futures contracts to secure a price and to protect price risks. For example, a corn producer may decide to sell a corn futures contract in May, after planting is completed, for December delivery.
How do I invest in corn futures?
How to trade corn futures. Corn futures are traded electronically on the Globex® platform from 8:00 p.m. U.S. ET to 2:20 p.m. U.S. ET on the following day, at 5,000 bushels per contract. An account approved to trade futures is required in order to trade corn futures.
How do you read corn futures?
How to read grain prices: a quick reference guideCash price = futures + basis +/- premium and discounts.Last: The last or most current trade price. ... Change: The difference between current price and previous settlement price.Open: Opening price for today.High: The highest trading price for today.More items...•
How do you understand futures?
Understanding Futures Contracts Futures are derivative financial contracts that obligate the parties to transact an asset at a predetermined future date and price. Here, the buyer must purchase or the seller must sell the underlying asset at the set price, regardless of the current market price at the expiration date.
How many bushels of corn are in a futures contract?
5,000 bushelsBy selling futures contracts against corn held in storage. Each futures contract is 5,000 bushels, so you must sell 10 contracts to fully hedge your position.
How do I invest in grain futures?
Wheat futures contracts are offered through CBOT on the Globex® trading platform and are available to trade electronically through Schwab. An account approved to trade futures is required in order to trade wheat futures.
How do the futures markets work?
A futures market is an exchange where investors can buy and sell futures contracts. In typical futures contracts, one party agrees to buy a given quantity of securities or a commodity, and take delivery on a certain date. The selling party to the contract agrees to provide it.
Why are commodities traded as futures?
Commodity futures can be used to hedge or protect a position in commodities. A futures contract also allows one to speculate on the direction of a commodity, taking either a long or short position, using leverage. The high degree of leverage used with commodity futures can amplify gains, as well as losses.
What are futures vs stocks?
Futures are contracts with expiration dates, while stocks represent ownership in a company. The following chart may help delineate the major differences between them. No limit to the number of futures contracts that can be issued. As contract prices change (debited) you may be required to provide additional margin.
What unit is corn sold in?
CBOT Corn Futures Prices. Corn (CBOT) 5,000 bu.; cents per bu.
How can I buy corn stock?
Sign up with an online broker or platform to invest in one or more of these corn stocks.Compare share trading platforms. ... Open and fund your brokerage account. ... Search for the stock you're interested in. ... Decide on how many to buy. ... Choose an order type. ... Buy the stock.
How can I invest in grain market?
Investors can gain exposure to the grain market by trading agricultural commodity futures, options and exchange traded funds (ETFs) based on individual risk tolerance and financial strength. Invest in grain commodity futures only if you have a high risk tolerance.
How many bushels are in a corn futures contract?
5,000 bushelsBy selling futures contracts against corn held in storage. Each futures contract is 5,000 bushels, so you must sell 10 contracts to fully hedge your position.
Corn Futures Contract Specification
The schedule is set on the 3rd Fridays of March, June, September, and December. Here is an example of an RTY contract from the CME:
Benefits of Trading Corn Futures
Before we discuss our tips on trading corn futures, it’s important to understand some of the benefits that trading corn futures offer. Here are some of them:
How Corn is Traded in the USA
With over 14 billion bushels of corn produced in the United States every year, the U.S. is the largest producer and exporter globally. The country produces three times more corn (over 330 tons) annually than China, the second country on the list of top producers.
How to Trade Corn Futures
The answer to this question is pretty obvious – just make an account with a broker, and you are good to go. However, in the next few paragraphs, we will focus more on the essentials that you should be aware of and provide some useful tips and tricks to help you understand in detail how to trade corn futures successfully.
Corn Production – Curiosities and Interesting Facts
Although corn is the second most-produced grain worldwide, there are some interesting facts that most people don’t know.
Summary
By now, you should be quite familiar with the benefits of trading corn in the futures market. You should also be able to take away some key insights and tips that you can use to get started.
How to trade corn futures
Corn futures are traded electronically on the Globex ® platform from 8:00 p.m. U.S. ET to 2:20 p.m. U.S. ET on the following day, at 5,000 bushels per contract. An account approved to trade futures is required in order to trade corn futures.
Corn futures contract specifications
Considering trading corn futures? Here are the corn futures contract specifications.
Corn Futures Exchanges
You can trade Corn futures at Chicago Board of Trade (CBOT), NYSE Euronext (Euronext) and Tokyo Grain Exchange (TGE).
Corn Futures Trading Basics
Consumers and producers of corn can manage corn price risk by purchasing and selling corn futures. Corn producers can employ a short hedge to lock in a selling price for the corn they produce while businesses that require corn can utilize a long hedge to secure a purchase price for the commodity they need.
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