In many parts of the world, it is known as "maize," which was the name predominately used before grain was discovered in the New World. The origins of corn have been hotly debated; some estimates of when it was domesticated range as far back as 12, years ago.

Corn is among the most versatile and complex grains in the world, and corn production and distribution has changed the face of history. With million metric tons of corn produced annually in the U. With so much acreage devoted to corn, this adaptable grain has clearly become a staple in the diets of people throughout the world. From the corn that feeds the animals we eat to the corn syrup in our processed foods and beverages to the ears of sweet corn and much, much more, this adaptable grain crop is everywhere.

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From Italy to Africa to Romania to South America, everyone has a specialty dish that revolves around this ubiquitous grain crop in some form or fashion. In fact, it might one day be the only source of fuel for our vehicles. Each month can bring new growth opportunities, if you know where the right investment seeds are. Find out more in Investing Seasonally In The Corn Market. A sample commodity futures contract for corn is shown in the following table. Understanding Corn Contracts Like every commodity , corn has its own ticker symbol, contract value and margin requirements.

To successfully trade a commodity, you must be aware of these key components and understand how to use them to calculate your potential profits and loss. For instance, if you buy or sell a corn futures contract, you will see a ticker tape handle that looks like this:. A trader buys or sells a corn contract according to this type of quotation. Depending on the quoted price, the value of a commodities contract is based on the current price of the market multiplied by the actual value of the contract itself.

Commodities are traded based on margin , and the margin changes based on market volatility and the current face value of the contract. Calculating a Change in Price Because commodity contracts are customized, every price movement has its own distinct value.

Facts About Production Approximately million metric tons of corn is produced annually.

CORN FUTURES | Derivatives

China is a close second, producing more than million metric tons a year. Brazil is a very far third, producing The only other grains that come close to corn in terms of production are rice and wheat.

Despite the widely diverse uses for corn, it is still primarily used as livestock feed.

A small portion of corn is diverted into corn syrup, new plastics and alcohol, and corn is also diverted to produce ethanol to create a cleaner, less expensive fuel source. Factors That Influence Corn's Price The price is influenced by the following factors:. Conclusion Corn is a phenomenally versatile grain that is used to feed animals, humans and perhaps eventually feed cars.

The saturation of corn in the global economy makes it extremely price-sensitive both in supply and demand. How the global marketplace will react to future shortages or miscalculations in demand will be the main factor in determining whether corn prices will double again, as in Dictionary Term Of The Day.

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Corn By Noble DraKoln Share. Corn Contract Specifications Ticker Symbol Open Outcry: ZC eCBOT Contract Size 5, bushels Deliverable Grades No. Contract Months March, May, July, Sept, Dec Trading Hours CBOT Open Outcry: For instance, if you buy or sell a corn futures contract, you will see a ticker tape handle that looks like this: Factors That Influence Corn's Price The price is influenced by the following factors: To fulfill biofuel needs in the U.

Tropical maize also has a short gestation period and can be easily rotated with standard corn or soybean crops without depleting the soil. Over half of the planted corn has been genetically modified to be more resistant to disease and herbicides.

The United States Department of Agriculture USDA produces several important reports on corn. Every year in the second half of March, its Prospective Plantings report is released, which details how much and which crops will be planted by farmers for the upcoming season.

Every month thereafter, its Monthly Crop Production report estimates the supply and demand for soybeans. The Grain Stocks report is published four times a year and examines the supply of soybeans and various other grains on a state-by-state basis and looks at whether the soybeans are offsite or onsite.

The North American Free Trade Agreement NAFTA added corn as one of its freely traded products, wreaking havoc on the Mexican economy because of the disparity between subsidies and farming sophistication. For more on NAFTA, see NAFTA's Winners And Losers. The world's six major producers of its most popular grain, corn, include the United States and China.

Learn if these producers are net importers or exporters. The widespread use of corn spans from food additives to fuel, aspirin and windshield washer fluid. Find out where else it's used and the size of this growing industry. But several key resistance levels are suggesting a continued downtrend.

Corn is building an inverse head and shoulders base that could support a rally above Global economic conditions are working to bloat our food costs. And for many, even the smallest increase in food prices can spoil the family budget. Hedging with futures can protect those who buy and sell commodities from adverse price movements.

The high-tech glass maker boasts new 3D shape at a 2D cost, banking on demand for next-gen tech. Recently, the DBA fund started trading near a short-term level of support.

This move sparked talks of a commodity reversal. Corn prices are suggesting this prediction is too early.

CBOT corn futures volume soars, data points to all-time high | Successful Farming

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