Corn Trading your best source online

 

 

Corn Trading is good for proper diversification within the agriculture and grain markets. Corn is a grass plant as seen by the leafy stocks. Corn is traded by speculators and producers/hedgers on the Chicago Board of Trade in Chicago now referred to as the CME Group.

 

Corn is an agricultural commodity. The three main agriculture/grain commodities are soybeans, wheat and corn.

Corn Trading Price

Corn trades in 5000 bushel units for each futures contract. A bushel of corn weighs approximately 56 pounds. A corn futures contract controls 5000 bushels of corn. Corn has been trading in a range of $5.42 - $7.87 a bushel over the past year 2011. Going back three years the range is $3.40 - $7.87 per bushel. Every cent the price of corn moves is a $50 move in value. A full $1.00 move in the corn market would equate to a $5000 move in the futures contract (5000 bushels X $1.00 move = $5000). A $4 move in the corn market has a value of $20,000 and would be considered a move of historical proportions.

Corn is traded with a futures contract to speculate on whether the price is to go up or down. If you think corn will increase in value you would want to go long a futures contract. This would be the case if you predicted that the amount of corn production was going to be lower due to lower crop yields from floods, fires or droughts. If demand for the corn is high then the price of corn should go higher.

 

Corn Trading History

Corn has been a staple food and basic use commodity for thousands of years. Earlier uses for corn where for food, clothing and even shelter. Today corn is used still for its original uses but now includes many more uses as fuels and sugars as well.

 

Corn Trading Basics

If you think the value (price) of corn will move lower then you would want to go short the corn futures contract. This would be the case if you expected supply to exceed demand.

One of the ways professional traders will use to determine whether to go long or short the corn futures is to use a trend trading system. Many traders use TradeThink our proprietary trading algorithm to help show the trend direction of the corn market.

 

 

Corn Trading Systems

Most individual traders will trade corn with a single futures contract. If you are a larger trader you could simply trade more contracts or use multiple strategies to leg into multiple corn contracts. Our Legacy X Pro strategy uses three different time frames to track the corn market. This way you can be long or short up to three corn contracts during a nice trend. If you want to trade even more corn contracts you can do that with some of our other systems.

 

Corn Grades

Corn grades deliverable for the CME Group and #1, #2 and #3. #1 corn trades at an 1 1/2 cent premium to contract price, #2 corn is the standard and #3 corn trades at an 1 1/2 cent discount.

 

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