Corn is the most widely produced grain crop globally, serving as a staple food for many people and playing a crucial role in feeding the growing world population.
According to the United States Department of Agriculture's (USDA) "World Agricultural Supply and Demand Estimates" report, nations worldwide are estimated to produce 1,222.77 million metric tons of corn for the 2023-2024 season.
The United States (US) alone is responsible for nearly one-third of global production, making CBOT Corn Futures one of the most actively traded commodities futures contracts.
In this article, we aim to examine the CBOT Corn Futures data and market news for their February updates.
Click to find out What You Need To Know About Trading Corn Futures.
Trading CBOT Corn Futures
Traders can trade Corn Futures from the Chicago Board of Trade (CBOT) which is part of the CME Group (Chicago Mercantile Exchange), through Singapore brokerage firm, Orient Futures Singapore.
Orient Futures Singapore is a licensed Singapore Forex and Futures Broker that will enable traders to engage in futures trading in the international and China market. This includes access to the China Derivatives market through either the QFI China Scheme or internationalized products.
In addition to Corn Futures, Orient Futures Singapore offers other commodity futures from various exchanges. This includes DCE China Soybean Oil Futures, CBOT Soybean Futures, SGX Rubber Futures and more.
Click to find out more on CBOT Corn Contract Specifications and CBOT Market trading hours.
CBOT Corn Futures Contract Specifications
The Chicago Corn Futures has the following specifications:
The CME Corn Futures Contract has a minimum price fluctuation of 0.0025 per bushel.
Contract months are March, May, September and 8 Monthly Contracts of July and Dec listed annually after the termination of trading in December contract of the current year.
The last trading day is the business day prior to the 15th calendar day of the contract month.
CBOT Market trading hours are from Monday to Friday, at these trading hours:
8:30 am – 01:20 pm (CT)
Or Sunday to Friday:
7:00 pm – 7:45 am
Corn Futures Symbol:
CME Globex: ZC
CME Clearport: C
Clearing: C
TAS: ZCT
CBOT Corn Futures Market Prices News
According to the Orient Futures Weekly Report on Agricultural Products dated 20240128, the overall spot price of corn declined at the end of January.
As of 26th January, the spot price in Bayuquan decreased by 1.3% to CNY 2320 per ton on a weekly basis. However, amid a consistent expectation of "first falling and then rising" in price trends, the May contract gradually shifted from futures being flat to a futures premium.
The main contract rose slightly by 0.64% to CNY 2358 per ton. The price difference between May and July continued to be around -30 CNY per ton.
SteelHome data shows that as of 25th January, the selling progress of corn by Northeast farmers was 46%, an increase of 4 percentage points from the previous week but slower than the same period last year by 2 percentage points.
In North China, the selling progress of corn by farmers was 49%, an increase of 3 percentage points from the previous week and faster than the same period last year by 1 percentage point. Sales progress from other information institutions is also generally slower than the previous year. Considering grassroots research progress is slower than institutional progress, concerns about selling pressure will continue to exist.
The external trade inventory of corn in Nangang showed a significant decrease on a weekly basis, and the total grain inventory also decreased. This is mainly due to a decrease in arrivals, resulting in a slight reduction in import supply pressure but still at historically high levels.
As of 19th January, SteelHome data shows that Nangang's external trade inventory of corn decreased by 13% to 905,000 tons on a weekly basis, and the grain inventory decreased by 4% to 1.829 million tons. The regular auction transaction rate of imported corn is gradually decreasing, with only 10% in the latest period, reflecting a relatively pessimistic attitude of the market demand side towards the future.
Deep processing consumption remains strong, with corn consumption reaching 1.3861 million tons at the end of January. This is a week-on-week increase of 0.3% and a year-on-year increase of about 58%.
Deep processing enterprises maintain a fast pace of raw material replenishment, and corn inventory increased by 7.4% to 5.558 million tons on a weekly basis. The number of days of corn inventory for national feed enterprises continues to show a slight increase on a weekly basis, and replenishment is mainly in regions with sufficient imported grain supply.
Inventories in North China and Northeast China have also started to increase. The inventory of Nangang continued to decline, while the inventory of Nangang increased. Nangang's inventory decreased by 7.6% to 1.269 million tons on a weekly basis, and the domestic trade inventory of Nangang increased by 47.4% to 115,000 tons on a weekly basis. Although the pre-holiday stockpiling demand was less than expected, it also caused the inventory of Nangang to rise from the bottom.
By the end of January, the replenishment of terminal enterprises has improved, and import pressure has also eased. However, the core contradiction during the grain-selling period still lies in the selling pressure of farmers and the intensity of channel replenishment.
With increased production and slower sales progress compared to the same period last year, concerns about selling pressure will continue to exist.
As the Spring Festival approaches (farmers will basically suspend selling grain after the Little New Year), it is expected that prices will briefly stabilize with the fading of purchases and sales. However, there may still be a short-term stampede after the New Year.
Under the consistent expectation of "first falling and then rising," the premium of the May contract relative to the Nangang spot is expected to continue to increase, and the price difference between May and July may continue to decline slightly.
The long strategy still needs to wait for the right time. The recent continuous rebound may provide new short-term short opportunities, but the risks are relatively high.
In terms of cross arbitrage, the basis of the May contract is expected to continue to decline, and attention can be paid to the arbitrage opportunities between futures and spot; the recommendation for the reverse spread between May and July is to continue to hold and observe.
Start Trading With Orient Futures Singapore
Being an Overseas Intermediary of Shanghai International Energy Exchange (INE), Dalian Commodity Exchange (DCE), and Zhengzhou Commodity Exchange (ZCE), when foreign clients participate in internationalised futures contracts in these Chinese markets with us, they have direct access to trading, clearing, and settlement. Our parent company, Shanghai Orient Futures, is the largest broker in terms of aggregated volume across the five regulated exchanges in China.
Orient Futures Singapore also currently holds memberships at the Singapore Exchange (SGX), Asia Pacific Exchange (APEX), and ICE Futures Singapore (ICE SG). Starting August 2023, corporate clients can also gain access to the B3 Exchange through us.
We provide bespoke services to our professional clients, tailored to their corporate and individual needs. Our team will be there for you 24 hours on trading days to provide a one-stop portal for all your trades, with simple processes and an intuitive user interface that has low or near-to-zero latency.
