Corn futures are
CFTC-regulated, exchange-traded contracts on the Chicago Board of Trade
(CBOT) and are one of the top 5 most-commonly traded commodity futures. Corn is the most widely grown crop across the United States, and corn futures contracts are the most active market in grains and oilseeds.
How does the corn futures market work?
Corn futures are
standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the
seller, a specific quantity of corn (i.e. 50 tonnes) at a predetermined price on a future delivery date.
How do you buy corn futures?
You can trade Corn futures at
Chicago Board of Trade (CBOT), NYSE Euronext (Euronext) and Tokyo Grain Exchange (TGE)
. CBOT Corn futures prices are quoted in dollars and cents per bushel and are traded in lot sizes of 5000 bushels (127 metric tons).
How do you read corn futures prices?
The minimum tick for these contracts in the futures market is
a quarter of a cent or 2/8ths
. Thus, if corn was trading at $4.15 1/4 (four dollars and fifteen and a quarter cents) the price would be displayed on a quote board as simply 415’2. The two represents the un-reduced fraction 2/8.
How much is corn futures contract?
In the United States, corn futures are traded at the Chicago Board of Trade (CBOT). The symbol for corn is ZC, and one contract of corn is worth
5,000 bushels
. The minimum tick size is 1/4 cent per bushel, which is worth $12.50/contract.
What will corn prices do in 2021?
Chicago corn futures last week were trading from about $5.20 to $5.75 per bushel, up 60% to 70% from a year earlier, with the December 2021 contract near
$5.65 per bushel
.
What months does corn trade in?
Principal trading months for corn futures include
March, May, July, September, and December
.
Why are corn futures up?
Corn, like other agricultural commodities, has seen its price climb over the last 12 months as businesses work to preempt future inflation and resupply inventory as economies return to normal activity after the Covid-19 pandemic. Including Tuesday’s pullback, corn futures are
up 28% in 2021
and 95% over the past year.
Why is corn prices so high?
Corn prices
rise on tightening supplies
D., AgriLife Extension grain economist, Bryan-College Station, said the market is highly speculative at this point due to a range of factors that boil down to tight supplies and high demand currently and uncertainty about domestic and foreign production this growing season.
What are corn prices today?
| Conversion Corn Price Price | 1 Bushel ≈ 0,035 m3 Corn Price Per 1 m3 151.25 USD | 1 Bushel ≈ 35,239 Liter Corn Price Per 1 Liter 0.15 USD |
|---|
How do you buy futures?
There are several exchanges, such as The
Chicago Board of Trade and the Mercantile Exchange
. Traders on futures exchange floors trade in “pits,” which are enclosed places designated for each futures contract. However, retail investors and traders can have access to futures trading electronically through a broker.
How do you contract corn?
The contract value
is calculated by multiplying the size of the contract by the current price
. For example, if December corn is trading for $4.00 per bushel and one contract is 5,000 bushels, the contract value is $20,000 ($4.00 price * 5,000 bushels = $20,000 contract value).
How are corn prices set?
The price of corn is
largely determined by supply and demand
. … The second and largest contributor to supply is current domestic production.
How much money do you need to open a futures account?
The lowest opening balance for a futures broker account is around $2,500. Most commodity futures brokers require new account holders to deposit a
minimum of $5,000 to $10,000
. A new trader should compare the requirements of several brokers along with the other costs and services provided.
How big is a corn futures contract?
The corn contract is for
5,000 bushels
. For example, when corn is trading at $2.50 a bushel, the contract has a value of $12,500 (5,000 bushels x $2.50 = $12,500).
What is corn futures limit?
For corn futures, the daily limit will move to
40 cents per bushel
, from the current 25 cents. Limits for CBOT soft red winter wheat futures and K.C. hard red winter wheat futures will rise to 45 cents, from 40 cents. For soybeans, the daily limit will widen to $1 per bushel, from 70 cents currently.
