WHAT are corn futures?
A futures contract that allows market participants the opportunity to profit on or hedge against the price movements of the worlds most widely grown crop.
WHY would you want to trade corn?
- It is one of the most actively traded commodity contracts and is a very liquid contract.
- The U.S. is the leading corn producer and exporter and offers trading opportunities.
- Corn prices are inversely related to the US dollar giving the traders to hedge against the dollar.
HOW do you trade corn futures?
All market participants trading ZC monitor reports from the U.S. Department of Agriculture, or USDA. The yearly highlight is the March issuance of the USDA’s Prospective Plantings Report, which details the quantity and type of crop U.S. farmers intend to plant.
Investors supplement this data with information from the quarterly Grain Stocks Report and the monthly Crop Production Report. Since the U.S. is the largest corn exporter, traders also consult the weekly export report for information about global demand.
These statistics are paired with historical data and weather projections to plan a trading strategy.
Ready to get started trading futures? You'll need to open an account with a broker. Click Here to View a Broker List