Corn futures are one of the main futures areas in the world, as corn may be the staple grain used in the west, specially in the United States. Billions in USD worth of corn futures are traded each day through markets, helping both to drive the value of corn, and to stabilize the current market.
Corn futures began trading in Chicago at about the same period which cotton started trading around New York, in the mid 1800s. Originally, the corn futures were with 3000 bushels however now it is traded for 5000 bushels. Corn futures trade in the eCBOT around the clock, pit session runs from 10: 30 am est thru 2: 00 pm est close. Who wouldn’t like a 3. 5 hour workday?
Corn futures at times close higher with the dollar losing ground and fair harvest weather in the forecast. Wheat rates frequently grow together with exports below expectations for the week. Corn production is up along with ending stocks on gradually declining livestock numbers. Though the investing frenzy subsided along with corn futures rates at week’s end, the blight lifted the cost of corn futures per bushel last week.
Grain quality merely becomes an issue when a significant percentage of the total crop has been influenced. For instance, small test weights throughout a bulk of the corn belt would lower normal yields, or really high levels of mycotoxins can make some corn unusable as a food, impracticable for ethanol use as well as excluded from export markets. Grain provided for sale at harvest incurs no storage and interest expenses. Nonetheless, while the year progresses, storage along with interest fees accrue and the cash rates rises to cover these expenses.
Wheat is also planted strictly as some forage crop meant for livestock as well as hay, that has little to do with corn futures. Wheat fundamentals are generally bearish as export need remains sluggish. USDA has raised their global wheat production amount in the past, reinforcing worries about plentiful wheat materials globally, and corn futures prices.
