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Corn Futures Trading Basics
Corn futures are standardized, exchange-traded contracts in which the contract buyer agrees to take delivery, from the seller, a specific quantity of corn (eg. 50 tonnes) at a predetermined price on a future delivery date.
Corn Futures Exchanges
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).
Euronext Corn futures are traded in units of 50 tonnes and contract prices are quoted in dollars and cents per metric ton.
TGE Corn futures prices are quoted in yen per metric ton and are traded in lot sizes of 50 tonnes .
| Exchange & Product Name | Symbol | Contract Size | Initial Margin |
| CBOT Corn Futures (Price Quotes) | C | 5000 bushels (Full Contract Spec) | USD 2,025 (approx. 11%) (Latest Margin Info) |
| Euronext Corn Futures (Price Quotes) | EMA | 50 tonnes (Full Contract Spec) | EUR 700 (approx. 11%) (Latest Margin Info) |
| TGE Corn Futures (Price Quotes) | - | 50 tonnes (Full Contract Spec) | JPY 75,000 (approx. 10%) (Latest Margin Info) |
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.
Corn futures are also traded by speculators who assume the price risk that hedgers try to avoid in return for a chance to profit from favorable corn price movement. Speculators buy corn futures when they believe that corn prices will go up. Conversely, they will sell corn futures when they think that corn prices will fall.
Learn More About Corn Futures & Options Trading
- Buying Corn Futures to Profit from a Rise in Corn Prices
- Selling Corn Futures to Profit from a Fall in Corn Prices
- Corn Options Basics
- Corn Call Option Trading Basics
- Corn Put Option Trading Basics
- Hedging Against Rising Corn Prices with Corn Futures
- Hedging Against Falling Corn Prices with Corn Futures
How to Start Trading Corn Futures
To buy or sell corn futures, you need to open a trading account with a broker that handles futures trades. Most online brokerages out there only deal with stocks and stock options. Only a few such as TD Ameritrade lets you trade futures and futures options as well. TD Ameritrade also provide a virtual trading platform where beginners can try out futures and options trading in real market conditions without using real money.
