Frequently Asked Questions

• 1.  

  What is corn trading?

  In the traditional sense, corn trading means the buying and selling of this widely traded agricultural commodity. The aim is to make some profits from the difference between the sell price and the buy price.

  As for online trading, traders use corn trading platforms to buy and sell corn or speculate on its price movements. They can trade corn through corn futures, corn CFDs, and corn ETFs.

  Corn CFDs allow investors to speculate on the price without going through the hassle of owning the underlying commodity.

  Corn Futures is a contract in which the parties agree to buy or sell corn at a predetermined price at a set date in the future. Future contracts are commonly traded on exchanges like Chicago Board of Trade (CBOT).

  Corn ETFs are funds that allows investors to track the prices of corn prices.

  2.  

  What are corn CFDs?

  Corn CFDs allow traders to speculate on the price of this commodity without owning the underlying assets.

  They can place a buy order or a sell order based on the movements of the price of corn.

  Corn CFDs offer the advantage of leverage. As such, traders can take control of larger positions with less capital. However, the higher the leverage, the higher the risks and investors should be careful, stay up to date, and use risk management strategies.

• 3.  

  How do corn futures work?

  In brief, corn futures are contracts that allow investors to buy or sell corn at a predetermined price on a set future date. CFD on futures allows traders to speculate on the price movements of these contracts, without having to take physical delivery of the asset.

  Corn futures are traded on the CBOT with the tick size of ¼ cent per bushel, equating to $12.50 per contract.

  A bushel is a measurement that is commonly used in agriculture to quantify the amount of the crop.

  4.  

  What are the trading hours for corn futures?

  Corn futures are commonly traded on exchanges such as the Chicago Board of Trade (CBOT). Corn futures trading hours are as below (following standard trading hours (Central Time - CT):

  Electronic Trading (CME Globex):

  • Sunday–Friday: 7:00 PM – 7:45 AM (next day)
  • Monday–Friday: 8:30 AM – 1:20 PM

  Open Outcry (Pit Trading - Less Common):

  • Monday–Friday: 8:30 AM – 1:20 PM

  These hours may change during holidays or special market conditions.

• 5.  

  What factors influence corn trading prices?

  Here are the common factors that influence corn trading prices:

  • Supply and demand: As a widely traded commodity, this agricultural crop is strongly influenced by the supply and demand dynamics. Let us explain that a bit further. When the supply of corn is high, prices tend to fall, while a shortage causes prices to rise.
  • Ethanol production is another factor that widely affects the price of corn. Ethanol is a biofuel that is blended with gasoline, and corn is considered a main ingredient in producing ethanol. If the demand for this biofuel rises, the prices of corn also rise. Corn will be demanded for both fuel production and food production.
  • Weather conditions play a major role in setting the prices of corn. In case of a drought, a flood, or any other extreme weather conditions, the prices of corn can go up because the production is less. The opposite is also true. Favorable weather conditions mean more of the crop is produced, and thus the prices go down.
  • Oil prices have an effect on the prices of corn. This may seem surprising, so let us clarify. As oil prices rise, biofuels like ethanol become more attractive, leading to increased demand for corn and, in turn, pushing prices up.
  • Trading policies of each country can make the prices of corn go up or down. If one country imposes more tariffs on imported corn, the prices of the locally produced corn can go up, especially since the supply will be less.
  6.  

  How can I start trading corn?

  To start corn trading, you need first to familiarize yourself with the factors that affect the price movements of this crop.

  Once done, set a calendar of the main events that you need to keep an eye for, so that you do not miss any.

  After studying the markets, consult with professionals and try to put together a strategy to follow.

  Now, it is time to open a demo trading account, and test and practice your strategy.

  Open a live account and start placing your first order.