Frequent question: How does corn trading work?

How much does a corn futures contract cost?

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 months does corn trade in?

Principal trading months for corn futures include March, May, July, September, and December.

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).

Why is corn trading so high?

Analysts say high corn prices are lifting makers of fertilizer and farm equipment while helping consumer products and food companies justify their own price increases. U.S. farmers, who are seeding fields for a big autumn harvest, are also benefiting.

Will corn prices go up in 2021?

The USDA forecast the average price of corn paid to farmers in 2021-22 (beginning Sept. 1, 2021) at $5.70 per bu, up 31% from $4.35 as the current year forecast and up 60% from $3.56 in 2019-20. … 1, 2021), up 23% from this year and up 62% from 2019-20.

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How much corn is in a corn future?

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 much money do you need to trade futures?

Based on the 1% rule, the minimum account balance should, therefore, be at least $5,000 and preferably more. If risking a larger amount on each trade, or taking more than one contract, then the account size must be larger to accommodate. To trade two contracts with this strategy, the recommended balance is $10,000.

How are corn options priced?

Corn option contracts are available for trading at NYSE Euronext (Euronext). Euronext Corn option prices are quoted in dollars and cents per metric ton and their underlying futures are traded in lots of 50 tonnes of corn.

How do you read corn prices?

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. If corn futures ticked lower, the new price would be 415, or $4.15.