Skip to content
GetProfitable
Search
Dictionary

Corn futures (ZC)

CBOT contracts on 5,000 bushels of number 2 yellow corn, the highest-volume agricultural futures market in the world.

Corn is the input to US animal feed and ethanol, so its price connects grain, livestock and energy markets. Listed months are March, May, July, September and December, with December the new-crop contract that prices the harvest still in the ground.

The old-crop to new-crop spread — July against December — is the classic agricultural intramarket-spread, expressing how tight supplies are before the harvest arrives. Weather markets in June and July can move the front contract 5% in a session on a forecast change.

Daily price limits and expanded-limits apply, and lock-limit days do happen on major wasde surprises.

Example: corn at 445'0 is $22,250 a contract. A 25-cent limit move is $1,250. A farmer with 250,000 bushels of production hedges with 50 contracts.

Related: bushel, wheat-futures, soybean-futures, wasde, cattle-crush-spread

See it drawn

Original diagrams for the ideas on this page. Illustrative, not real market data.

Bid-ask spread in an order bookSell orders stacked above buy orders with a gap between the best of each.SELLERS (asks)50.0690050.051,40050.0460050.011,10050.002,30049.99800spread = 0.03BUYERS (bids)
The bid-ask spread. Buy orders sit below, sell orders above, and the gap between the best bid (50.01) and best ask (50.04) is the spread you pay to cross. Bar length shows the size resting at each price.

Educational only, not advice. Spotted an error? Post in Site Feedback.