Corn Futures

• Ticker Symbol: C
• Exchange: CBOT
• Trading Hours: 10:30 - 2:15 EST.
• Contract Size: 5,000 bushels
• Contract Months: Mar, May, Jul, Sep, Dec
• Price Quote: price per bushel. Ex $3.50 per bushel
• Tick Size: ¼ cent/bu. ($12.50/contract)
• Last Trading Day: The business day prior to the 15th calendar day of the contract month

The primary uses for corn are: animal feed, food, alcohol, ethanol, industrial usage and seed. The grades of corn that are traded on the CBOT are mainly used for animal feed. The U.S. produces about 10-12 billion bushels of corn a year and is the leading exporter of corn.

Corn is planted during April and May in the United States and it is harvested during October and November. Iowa, Illinois and Nebraska are the top corn producing states. Corn is also used to produce ethanol, which has led to a strong increase in demand for corn in 2006 and 2007.

• Prospective Plantings - The first main report at the beginning of the growing season, released around the end of March. It summarizes how much and which crops the farmers expect to plant for the upcoming season.
• Monthly Crop Production - Released around the 10th of each month. The report gives an updated estimate of supply and demand for corn.
• Grain Stocks - Provides information on the current supply of corn and other grains in the U.S. and the world.

• Expect the summer months to be the most active and volatile for trading corn futures. Watch the weather in the Midwest for excessive heat or floods.
• Monthly crop reports are a big market mover. The reports are released from the USDA around the 10th of each month and analyze the supply and demand for grains.
• Monitor how quickly the corn crop gets planted around April and May. If it gets planted late, the corn crop may be smaller that year and the price could move higher.
• Avoid buying expensive options when the market is very volatile. Traders can bid prices to levels that may be sucker bets.