Corn futures are one of the major futures markets in the world, as corn is the staple grain used in the west, especially in the United States. Billions of USD worth of corn futures are traded each day through markets, helping both to drive the price of corn, and to stabilize the market.

Corn futures started trading in Chicago at about the same time that cotton began trading in New York, in the mid 1800s. Originally, the corn futures were for 3000 bushels but now it is traded for 5000 bushels. Corn futures trade on the eCBOT around the clock, pit session runs from 10:30 am est thru 2:00 pm est close. Who wouldn’t love a 3.5 hour workday?

Corn futures sometimes close higher with the dollar losing ground and fair harvest weather in the forecast. Wheat prices often rise with exports below expectations for the week. Corn production is up along with ending stocks on slowly declining livestock numbers. Though the trading frenzy subsided along with corn futures prices at week’s end, the blight lifted the price of corn futures bper bushel last week.

Grain quality only becomes an issue when a significant portion of the total crop has been affected. For example, low test weights across a majority of the corn belt would reduce average yields, or very high levels of mycotoxins can make some corn unusable as a feed, impracticable for ethanol use and excluded from export markets. Grain offered for sale at harvest incurs no storage and interest costs. However, as the year progresses, storage and interest costs accrue and the cash prices increases to cover these costs.

Wheat is also planted strictly as a forage crop for livestock and hay, which has little to do with corn futures. Wheat fundamentals are generally bearish as export demand remains sluggish. USDA has raised their global wheat production figure in the past, reinforcing concerns about abundant wheat supplies globally.