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Below is a summary and basic information from the exchange for some of the popular commodities that fall under the grains sector.
Agriculture markets can be to some extent predictable as they are on a set seasonal planting, growing, and harvesting cycles. Historical data allows farmers and traders to typically see what months certain things should occur for the best economic result.
Corn futures contracts are the benchmark for the corn market. Corn, also know as maize, is native to the Americas. Corn grows in warm weather and usually matures in late summer. It is tied with wheat as the second-largest cereal crop in the world. Corn has countless uses. It is used for food, livestock feed, alternative fuel (ethanol), and the production of sweeteners like corn syrup.
Corn futures began trading in the Chicago commodities futures markets in the mid-1880s. Corn has been called the “other yellow gold” because of its value around the globe throughout most of the history of man. In the days of the early settlers to North America corn was so valuable that it was used as money and traded for other products such as meat and furs.
Corn is among the most versatile and complex grains in the world. Corn production and distribution has changed the face of history. Corn is called maize by most countries, this comes from the Spanish word ‘maiz’. Corn grows in warm weather and usually matures in late summer. Extreme heat and droughts in the Midwest are the biggest fear for farmers and corn traders. Mid to late July is when corn goes through its critical pollination phase. There are over 3,500 different uses for corn products. Juices and soft drinks like Coca-Cola and Pepsi contain corn sweeteners. A bushel of corn can sweeten 400 cans of soft drink. Corn is also used as feeding livestock and poultry and found in domestic pet food. Corn is produced on every continent in the world besides Antarctica.
Surprisingly, only a small portion goes to actual human consumption. Therefore, it is important to monitor the price of crude oil and gasoline which determines the demand for ethanol. A cheap corn price and a high price of crude oil often can lead to increased demand for ethanol. The USDA releases an export report every Thursday, which details the demand for corn exports.
5,000 bushels.
1/4 cent/bushel ($12.50/contract)
Cents/bushel
Dec, Mar, May, Jul,Sep
The business day prior to the 15th calendar day of the contract month.
Second business day following the last trading day of the delivery month.
Thirty cent ($0.30) per bushel ($1,500/contract) above or below the previous day's settlement price. No limit in the spot month (limits are lifted beginning on First Position Day).
Chicago Board of Trade wheat futures contracts are the benchmark for the soft-red winter wheat market. Wheat is a grass that is cultivated around the world. It is tied with corn as the second-largest cereal crop in the world. The wheat grown in the United States falls into two categories: winter wheat, which is planted in the fall and matures in the summer, and spring wheat, which is planted after the danger of frost is over and also matures in the summer.
All types of wheat can be divided in two major groups: spring and winter wheat. Spring wheat is planted during the spring and harvested during the summer. Winter wheat is planted at autumn and harvested during the spring. On average, Kansas is the largest wheat producing state. Nearly one-fifth of all wheat grown in the United States is grown in Kansas.
Six classes of wheat are grown in the United States and Kansas produces three of them. Hard Red Winter accounts for 95% of all production in Kansas. Hard Red Winter Wheat is high in protein, has strong gluten. Kansas is responsible for producing 40% of U.S. Hard Red Winter wheat. Wheat is rich source of proteins, sugar (in the form of starch), vitamins of the B group and minerals such as iron, manganese, magnesium and zinc. Each American consumes about 134 pounds of wheat flour per year. Wheat is used for the production of bread, pasta, cookies, breakfast cereals and fermented beverages. Wheat is used in the production of alcoholic beverages such as vodka, gin and whiskey. Ethanol produced from the wheat can be used as bio-fuel. Wheat is used for cattle, poultry and other livestock feed. New uses of wheat encompass plastics manufacturing and aquaculture feed purposes for both fish and shrimp.
5,000 bushels
1/4 cent/bushel ($12.50/contract)
Cents/bushel
Jul, Sep, Dec, Mar, May
The business day prior to the 15th calendar day of the contract month.
Seventh business day following the last trading day of the delivery month.
Sixty cents ($0.60) per bushel ($1,500/contract) above or below the previous day's settlement price. No limit in the spot month (limits are lifted beginning on First Position Day).
Oats futures contracts are the benchmark for the oats market. Oats are primarily grown in Canada. Oats are a cereal grain. It comes in many forms. Oats are popular because of their high nutritional value, and protein content. They are used for food, feed, and the straw is commonly used as animal bedding. Oats are more tolerant to extreme conditions than wheat so it is grown in areas where wheat cannot grow.
Oats are a whole-grain cereal, known scientifically as Avena sativa. They are mainly grown in North America and Europe. They are used for food, feed, and the straw is commonly used as animal bedding. Oats are more tolerant to extreme conditions than wheat so it is grown in areas where wheat cannot grow. Oats are most commonly rolled or crushed, and can be consumed as oatmeal, in baked goods, bread, muesli and granola. To produce infant oatmeal, oats are often further processed into powder that becomes a thick porridge when mixed with water. The oats market is thinly traded. It's trading volume is much lighter than corn, wheat or soybeans.
5,000 bushels
1/4 cent/bushel ($12.50/contract)
Cents/bushel
Jul, Sep, Dec, Mar, May
The business day prior to the 15th calendar day of the contract month.
Seventh business day following the last trading day of the delivery month.
Twenty cents ($0.20) per bushel ($1,000/contract) above or below the previous day's settlement price. No limit in the spot month (limits are lifted beginning on First Position Day).
Soybeans futures contracts are the benchmark for the soybeans market. Soybeans (or soya bean) are legumes. Soybeans are native to southeast Asia, but the vast majority of the world’s supply is produced in Brazil and the United States. The main uses for soybeans are the production of soybean oil (bean oil), and soybean meal (soymeal). The oil is used in a extensive list of products and the meal is primarily used in animal feed.
Soybeans are one of the most popularly traded commodities futures products in the world. China is the biggest importer of soybeans, with 60 percent of total imports, followed by the European Union, Mexico, Japan and Taiwan. Soybeans are considered the second largest revenue generating crop for the U.S. More soybeans are grown in the United States than anywhere else in the world. Soybeans grow in pods similar to peas. U.S. farmers first grew soybeans as cattle feed.
Soybeans are a multipurpose crop. Soybean oil is used for food oils, paint, plastics, and bio diesel production. They are even used to make soy ink, which is used in printing textbooks and newspapers. Soy protein is the only plant protein that contains all 8 essential amino acids and is considered a complete protein. Traditional non-fermented food uses of soybeans include soy milk from which tofu and tofu skin are made. One acre of soybeans can produce 82,368 crayons.
5,000 bushels
1/4 cent/bu ($12.50/contract)
Cents bushel
Sep, Nov, Jan, Mar, May, Jul, Aug
The business day prior to the 15th calendar day of the contract month.
Second business day following the last trading day of the delivery month.
70 cents/bu ($2,500/contract) above or below the previous day's settlement price. No limit in the spot month (limits are lifted beginning on First Position Day).
Soybean meal futures contracts are the benchmark for the soybean meal market. Soybean meal is the product remaining after extracting most of the oil from whole soybeans. Bean meal becomes tofu.
A 60-pound bushel of soybeans yields about 11 pounds of oil and about 48 pounds of meal. Typically when soybeans are processed they are cleaned, cracked, dehulled, and rolled into flakes. This process separates the soybean oil and the soybean meal. The oil can be used in food products like salad dressing or cooking oils or it can be used in countless industrial products. The meal part of the soybean meal, which contains the protein, can be used in further food products or it can be used to provide feed to livestock. The livestock industry is the largest consumer of soy meal. It is well suited for feed in aquaculture, beef, dairy cattle, horses, poultry, sheep, and swine. In fact, 98 percent of U.S. soy meal goes to feed pigs, chickens and cows. Animal agriculture is a soybean farmer’s #1 customer. The soybean is the highest natural source of dietary fiber.
100 tons (2,000 lbs/short ton)
10 cents/ton ($10/contract)
Dollars and cents/short ton
Oct, Dec, Jan, Mar, May, Jul, Aug, Sep
The business day prior to the 15th calendar day of the contract month.
Second business day following the last trading day of the delivery month.
$20/short ton ($2,000/contract) above or below the previous day's settlement price. No limit in the spot month (limits are lifted beginning on First Position Day).
Soybean oil futures contracts are the benchmark for the soybean oil market. The bulk of the soybean crop is grown for oil production. When soybeans are crushed it produces both soybena meal, and soybean oil.
Soybean oil, commonly called vegetable oil, is very popular because it is cheap, healthful and has a high smoke point. Soybean oil is not only used in food products. It also used as a natural renewable replacement for petroleum-based products such as: bio diesel, inks, plasticizers, crayons, paints and soy candles.
The bulk of the soybean crop is grown for oil production. When soybeans are crushed it produces both soybena meal, and soybean oil. Soybeans actually have hundreds of uses from industrial products like engine oil or crayons to food products and animal feeds. Soybeans are naturally rich in protein and oil and they have the highest natural source of dietary fiber making them a very versatile crop in terms of how it is used. Soybean oil provides an environmentally friendly fuel for diesel engines. Soybean oil is the most widely used vegetable oil. It is found in margarine's, salad dressings, canned foods, sauces, bakery goods, and processed fried foods.
60,000 lbs
1/100 cent ($0.0001)/lb ($6/contract)
Cents/lb
Oct, Dec, Jan, Mar, May, Jul, Aug, Sep
The business day prior to the 15th calendar day of the contract month.
Last business day of the delivery month.
2.5 cents per pound ($1,500/contract) above or below the previous day's settlement price. No limit in the spot month (limits are lifted beginning on First Position Day).
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