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Corn Trading
Corn Trading Defined and ExplainedTrading in the
corn market is appealing because of the wide scope of products for which corn is used for. In addition to its primary use as a feed for livestock including cattle, hogs and poultry and its use as a food for human consumption, an increasingly large share of U.S. corn production is now used to produce ethanol for fuel. Among the many widely used byproducts into which corn can be transformed are corn oil, corn starch and corn sweeteners used in soft drinks in the food area and absorbing agents for disposable diapers and adhesives for paper products and plastics in the non-food area. Corn Prices & RatesThe Chicago Board of Trade is the premiere corn futures trading exchange in the world today.
Corn Trading Supply InformationVarieties of corn are grown in a number of areas of the world including Brazil, Argentina, China and elsewhere, but corn futures traded at the CBOT are based on U.S. production. Much of the U.S. corn crop is grown in the Corn Belt stretching from Nebraska to Ohio and from Minnesota to Missouri. The number of acres planted is a critical starting point for the size of the U.S. corn crop. Compared to other feed grains and soybeans, input costs for corn are higher, and prices for fertilizer, fuel and other input items sometimes influence farmers to plant other crops that have lower production risk. When all goes well, corn can also produce the highest return per acre. Most of the corn in the Corn Belt is planted in April-May. The most critical period for determining yields and the amount of corn production in a given year is during July, when pollination typically occurs. Although other crops can recover from unfavorable weather conditions, corn is especially subject to yield losses from hot, dry conditions during this 2-3 week pollination period. Most of the corn harvest takes place in October-November. About 90-92 percent of planted acres are harvested for grain with the remainder being cut for silage, abandoned due to the effects of weather or not used for grain production for some other reason. The timing of these periods depends, of course, on the planting and emergence dates of the corn crop and the progress the crop makes during the growing season. See how VantagePoint Software can predict the
Corn Trading market with up to 86% accuracy* - Get
Free Corn Forecasts now. Corn Trading Usage InformationMost of the U.S. corn crop has been consumed as feed by cattle, hogs or poultry in the past, but corn usage is now split about evenly between feed for animals and food/industrial uses. The reason for the jump in food/industrial use is due the increase in the amount of corn used in ethanol production, accounting for roughly a third of the annual U.S. corn output. About 2 billion bushels of U.S. corn is exported annually as the United States is the worlds largest corn supplier by far. Other export suppliers include Argentina and Brazil and, to a lesser extent, South Africa and Thailand.
Corn Trading StrategyWhen trading corn futures, seasonal analysis can be a powerful asset. Depending on yield prospects and the total supply of corn available, corn futures prices tend to weaken going into and during the early part of the fall harvest season. Then as corn moves into grain bins and demand picks up from larger animal numbers and exporters trying to get corn into position to ship, corn prices begin to pick up. Sometime after the first of the year, the so-called February break causes corn prices to decline again. As the planting season approaches and the market tries to buy corn acres, corn futures prices firm up until the market sees how the crop is doing. Summer often produces a number of rallies and subsequent setbacks based on weather or the latest forecast. Obviously, the typical seasonal corn price pattern is subject to change, depending on conditions, but it gives corn futures traders and hedgers a road map to follow by tracing the average behavior of the corn market in the past. Corn Trading NewsCorn Trading TipCorn Trading HistoryBreaking News
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* VantagePoint's accuracy statistics were computed on out-of-sample price data utilizing neural networks trained on both single market and intermarket data and relate to the Neural Index which indicates whether the average of tomorrows typical price and the typical price of the day after tomorrow (both unknowns at this time) are expected to be higher or lower than the average of yesterday's typical price and the typical price of the day before yesterday. The numerical value of the Neural Index, either a one (1) or a zero (0) thereby indicates whether or not the trend direction is expected to be higher or lower for each target market over the next two days. A Neural Network accuracy statistic of 80% does not mean that eight out of ten trades will be winning trades. VantagePoint is not a trading system that gives the same specific buy and sell signals to all users. It is a technical forecasting tool that is comprised of proprietary forecasting indicators that apply neural networks to market data for the purpose of finding patterns and relationships between markets and then using this information to make futuristic forecasts. Using these indicators each trader determines his or her own entries, exits and stop placements which may vary from those of other traders due to differences among traders in trading style, objectives, risk propensity, account size and number of contracts involved, thereby producing different trading results from one trader to another. Futures and options trading involves risk, is not for every trader, and only risk capital should be used. For more detailed information, please read our Important Disclaimer, Privacy Policy, and Software License Agreement. |
