Corn futures is part of the grain and oilseeds complex and trades at the CME Group exchange. Corn is planted during April and May in the United States and it is harvested during October and November. Iowa, Illinois and Nebraska are the top corn producing states. Corn is also used to produce ethanol.
Ticker Symbol: C, ZC (Globex)
Exchange: CME Group
Trading Hours: Sunday – Friday, 7:00 p.m. – 7:45 a.m. CT and
Monday – Friday, 8:30 a.m. – 1:20 p.m. CT
Contract Size: 5,000 bushels
Contract Months: 9 monthly contracts of Mar, May and Sep listed annually and 8 monthly contracts of Jul and Dec listed annually
Price Quote: price per bushel. Ex $3.50 per bushel
Tick Size: ¼ cent/bu. ($12.50/contract)
Last Trading Day: Trading terminates on business day before the 15th day of the contract month.
Daily Price Limit: .25 (see latest at CME Group Price Limits)
Corn Fundamentals
Planting in the corn belt begins in the southern states as early as March, in the corn belt by late April, and is completed in the northern areas by the end of May. Maximum growth is achieved in the main corn producing areas by late August and harvest begins in early October. By mid-November, most of the corn has been harvested.
Approximately 55-60% of the U.S. corn crop is actually used for livestock feed, 10-20% is exported, human food use accounts for 8-10%, and between 35 to 40% of the U.S. crop is used to produce ethanol.
Corn Reports
There are several reports from the USDA that are helpful in your research and trading of corn futures and options:
Prospective Plantings – The first main report at the beginning of the growing season, released around the end of March. It summarizes how much and which crops the farmers expect to plant for the upcoming season.
Monthly Crop Production – Released around the 10th of each month. The report gives an updated estimate of supply and demand for corn.
Grain Stocks – Provides information on the current supply of corn and other grains in the U.S. and the world.
Crop Progress – Issued weekly during the growing season (April to November), which lists planting, fruiting, and harvesting progress and overall condition of selected crops in major producing states. The data, summarized by crop and by state, are republished along with any revisions in the Weekly Weather and Crop Bulletin. During the months of December through March, the report is issued monthly titled State Stories.
Grain: World Market and Trade – This monthly report includes data on U.S. and global trade, production, consumption and stocks, as well as analysis of developments affecting world trade in grains. Covers wheat, rice and coarse grains (corn, barley, sorghum, oats and rye).
Tips on Trading Corn Futures
- Expect the summer months to be the most active and volatile for trading corn futures. Watch the weather in the Midwest for excessive heat or floods.
- Monthly crop reports are a big market mover. The reports are released from the USDA around the 10th of each month and analyze the supply and demand for grains.
- Monitor how quickly the corn crop gets planted around April and May. If it gets planted late, the corn crop may be smaller that year and the price could move higher.
- Use caution when buying expensive options when the market is very volatile. Traders can bid prices to levels that factor in a great deal of volatility premium in the price. If volatility declines, the option price could decline even if the corn futures price remains the same.
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