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 CBOT Corn Futures and Options Market

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T & K Futures and Options, Inc. is federally licensed U.S. corporation specializing in helping investors implement futures and options investment strategies. We are happy to answer all of your questions about corn futures and options. Click here for answers to your questions.

The History of Corn and Corn Futures Trading

Corn has been called the other yellow gold because of its value around the globe throughout most of the history of man. Corn is a member of the grass family of plants and is one of the native grains of the American continents. For thousands of years corn has been a staple of everyday life, serving as a source of food, energy and currency. Early Indians migrated from Eastern Asia through North America to what is now South America and used corn plants for everything from making clothes to making a primitive beer from its chewed kernels. For thousands of years, maize crops have been cultivated by the Mayans and Incas to today's advanced hybrids resistant to pests and chemicals, corn remains firmly rooted at the heart of agriculture. Corn is thought to be the second most cultivated plant throughout the history of man behind wheat.

CBOT Corn Futures and Options Quick Facts

  • 5000 bushel contract size

  • one cent move equals $50

  • trades March, May, July, September, December

 

Fundamental analysis of the corn market

Top Producers 2010-2011

  • United States (produces about 42% of the world supply)

  • China (produces about 20%)

  • Brazil

Top Demand Categories

  • livestock feed (about 42% of usage)

  • ethanol

  • high fructose corn syrup

  • corn starch

  • glucose and dextrose sugars

Other fundamental factors affecting corn prices

  • weather (floods, drought and freeze damage)

  • livestock production

  • shipping delays

  • fungus and disease

As an exchange traded commodity and future contract, corn futures is one of the two originals and is also the most liquid of the grain future contracts. Cotton began trading in New York at about the same time that corn futures began trading in Chicago in the mid 1800's. 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.

Contact us at contact@tkfutures.com for specific corn futures and corn options data.

The corn market's role in the production of ethanol has increased its demand because of the high prices for petroleum products. Many experts agree that if crude oil prices stay above $45/barrel it is economically feasible for ethanol to be produced and added to unleaded gasoline.

Corn, soybeans and wheat are often used to feed poultry and livestock and are sometimes substitutes for each other based on prices. As an example, if corn prices are too high, livestock farmers may feed their animals feed wheat or some other grain. The same goes for soy meal and corn meal. Poultry farmers will use which ever one gives them the most protein bang for the buck.

Corn has many different uses and many different products are made from corn that many people are unaware of: antibiotics, aspirin, laminated building products, lubricating agents, metal plating, adhesives, construction materials and even cardboard. These diverse applications for corn make the corn futures and corn options market that much more important to the corn industry. Many savvy farmers use the corn futures and corn options markets to hedge their crops against adverse price movements.

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Corn and Corn Futures and Options Uses

How many times a day does the average American consumer use a product derived from corn? You may fill your car up with ethanol blended fuel. That soda at lunch - sweetened with a corn sweetener. Maybe you have a pillow or comforter made from corn fiber. And the pot roasts for dinner - most likely corn-fed beef. The grain future contracts have become more and more popular because of their relative liquidity and leverage.

Regardless of market, producers around the world continue to explore value-added opportunities for corn. One of the most successful efforts has been the growth of the ethanol market. Ethanol production is being subsidized in the U.S. and its production continues to increase and newer automobiles are being outfitted to withstand the extra wear and tear that ethanol hase on rubber fuel hoses and other parts of the car that are not resistant to alcohol. Corn future and ethanol future trading have become major future trading contracts. Learn More >>>

Corn Future Contract Specifications

Corn Futures

Size - 5,000 bushels

Tick Size - $0.025/bu

Daily Price Limit - $0.20/bu

Strike Price - N/A

Contract Months - Dec, Mar, May, Jul, Sep

Last Trading Day - Seventh business day proceeding the last business day of the delivery month

Expiration Day - N/A

Trading Hours - 9:30a.m. - 1:15p.m. (verify with exchange)

Ticker Symbol - C

Corn Options

Size - One CBOT Corn Futures

Tick Size - 1/8c/bu

Daily Price Limit - $0.20/bu

Strike Price - $0.10/bu

Contract Months - Dec, Mar, May, Jul, Sep

Last Trading Day - Last Friday proceeding the first notice day of the corresponding futures contract by at least five business days.

Expiration Day - Unexercised options expire at 10 a.m. on the first Saturday following the last trading day.

Trading Hours - 9:30 a.m. - 1:15 p.m. (verify with exchange)

**Click Here Now! for actual futures and options prices, expirations, charts .....

 

Corn Futures Facts

One bushel of corn weighs 56 pounds.

One bushel of corn produces 2.7 gallons of ethanol.

To produce 1 pound of chicken requires 2 pounds of grain.

To produce 1 pound of pork requires 4 pounds of grain.

To produce 1 pound of beef requires 8 pounds of grain.

 

 

To see more about the grain futures visit soybean futures and wheat futures.

Also visit Corn Futures Special Report

To to open an account click online future trading.

For specific future trading information visit commodity research.

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The information presented in this commodity futures and options site is not investment advice and is for informational purposes only. Investments in commodity futures and options involves a high degree of risk, your investment may fall as well as rise, you may lose all your original investment and you may also have to pay more than the original amount invested. Consult your broker or advisor prior to making any investment decisions. Past or simulated performance is not a guide to future performance. Futures Trading is not suitable for everyone. This site provides information on online commodity trading, online future trading, commodity future online trading, commodity options, futures trading commodity brokerage.