Corn has become one of the main staple crops in the world. cbot corn futures are the world’s most popular commodity futures. Corn futures are sold by a major exchange, the Chicago Board of Trade (CBOT). The symbol for CBOT is ZC for electronic trading.
Corn has its own ticker symbol, contract value and margin requirements. Corn futures are standardized, exchange-traded contracts in which the buyer agrees to take delivery of a specific quantity of corn from the seller at a predetermined price.
All corn futures contracts are denominated in U.S. currency per bushel of corn and price osciilates by a minimum of $0.0025 per bushel.Contracts are offered for expiry dates in March, May, July, September, and December.
The initial margin for CBOT is $2,700 per contract. Mini corn contracts are also available. On CBOT, the contract size is 1,000 bushels.The traders take advantage of trading with smaller contract sizes and lower margin amounts.
Most of the corn which is traded on CBOT is used to feed livestock and poultry. Cattle and pigs are fed by corn and corn products. It has lead to the rise in demand of these food products resulting in a rise in corn prices.
Corn has become extremely price-sensitive both in supply and demand. Corn prices are closely tied to energy prices because corn is used to make ethanol. This correlation can be observed in terms of 2008 Financial Crisis.
Corn futures are gaining importance as corn-dependant populations continue to grow. Corn is a viable option for those Investors looking for growth commodity futures. (NAFTA) has added corn as one of its freely traded products.
Following is one of the samples of CBOT Corn Futures:
Ticker Symbol – C
Size – One CBOT Corn Futures
Tick Size – 1/8 of one cent per bushel ($6.25 per contract)
Daily Price Limit – $0.40/bu
Strike Price – $0.10/buontract Months – Dec, Mar, May, Jul, Sep
Last Trading Day – Last Friday preceding 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 – Sunday to Friday: CME Globex trading from 7:00 p.m. to 7:45 a.m. CT
Monday to Friday: Break in CME Globex trading from 7:45 a.m. to 8:30 a.m. CT
Monday to Friday: Floor and CME Globex trading from 8:30 a.m. to 1:15 p.m.