In this guide to trading corn, we’ll explain how and where you can trade this popular commodity with a list regulated brokers that are available in .
In a hurry? If you want to get started trading corn and other commodities here are brokers available to traders in to consider:
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Trade popular agricultural commodities such as coffee, sugar, wheat, and corn via CFDs. No commissions and tight spreads (additional fees apply) along with free lifelong demo account.
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Trade cocoa, rubber, wheat & other agricultural commodities at eToro.
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Take advantage of low spreads to gain exposure to agricultural commodities such as cotton, coffee, corn, soybeans, sugar, and wheat via CFDs.
How Can I Trade in Corn?
Traders have several ways to speculate on the price of corn:
| Method of Investing | Complexity Rating (1 = easy, 5 = hard) | Storage Costs? | Security Costs? | Expiration Dates? | Mgmt Costs? | Leverage? | Regulated Exchange? |
|---|---|---|---|---|---|---|---|
| Corn Futures | 5 | No | No | Yes | No | Yes | Yes |
| Corn Options | 5 | No | No | Yes | No | Yes | Yes |
| Corn ETFs (ETNs) | 2 | No | No | No | Yes | No | Yes |
| Corn Shares | 2 | No | No | No | No | Yes | Yes |
| Corn CFDs | 3 | No | No | No | No | Yes | Yes |
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Corn Futures
The Chicago Mercantile Exchange (CME) offers a contract on corn that settles into 5,000 bushels or about 127 metric tons of #2 yellow corn. Traders can also deliver #1 yellow corn at a 1.5 cent per bushel premium or #3 yellow corn at a 1.5 cent per bushel discount.
The contract trades globally on the CME Globex electronic trading platform and has expiration months of March, May, July, September and December.
Futures are a derivative instrument through which traders make leveraged bets on commodity prices. If prices decline, traders must deposit additional margin in order to maintain their positions. At expiration, the contracts are physically settled by delivery of corn.
Trading in futures requires a high level of sophistication since factors such as storage costs and interest rates affect pricing.
Corn Options on Futures
The CME offers an options contract on corn futures.
Options are also a derivative instrument that employ leverage to trade in commodities. As with futures, options have an expiration date. However, options also have a strike price, which is the price above which the option finishes in the money.
Options buyers pay a price known as a premium to purchase contracts. An options bet succeeds only if the price of corn futures rises above the strike price by an amount greater than the premium paid for the contract.
Therefore, options traders must be right about the size and timing of the move in corn futures to profit from their trades.
Corn ETFs
These financial instruments trade as shares on exchanges in the same way that stocks do. Only one ETF – Teucrium Corn Fund – offers a pure play trade in corn. The fund invests in corn futures contracts.
Other ETFs, such as PowerShares DB Agriculture Fund and UBS ETRACS CMCI Agriculture Total Return ETN, invest in corn along with many other agricultural commodities.
| Teucrium Corn Fund | PowerShares DB Agriculture Fund | UBS ETRACS CMCI Agriculture Total Return ETN |
|---|
Data last reviewed:
There are no public companies that are a pure-play investment in corn. However, traders that want exposure to corn prices may want to consider buying shares in large agribusinesses that provide seeds, fertilizers and pesticides to farmers:
| Company | Description | Exchange | Founded | Interesting Fact |
|---|---|---|---|---|
The Mosaic Company | Global agricultural company that sells crop nutrients to farmers. | New York (NYSE) | 2004 | Mosaic is the United States' largest producer of phosphate fertilizer and potash. |
Nutrien  | Global agricultural company that sells fertilizer and feed products. | New York (NYSE) | 1975 | Nutrien was formed in January 2018 after the Potash Corporation of Saskatchewan and Agrium merged. |
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Contracts for Difference (CFDs)
One way to trade in corn is through the use of a contract for difference (CFD) derivative instrument. CFDs allow traders to speculate on the price of corn without owning the underlying asset. The value of a CFD is the difference between the price of corn at the time of purchase and its current price.
Many regulated brokers worldwide offer CFDs on corn. Customers deposit funds with the broker, which serve as margin. The advantage of CFDs is that traders can have exposure to corn prices without having to purchase shares, ETFs, futures or options.
IMPORTANT: CFDs are not available in the USA.
Where Can I Trade Corn?
Start your research with reviews of these regulated brokers available in .
| Broker | Details | Sign up |
|---|---|---|
 | User friendly platform and leading risk management tools. | Open Account Now Plus500 Review |
 | Social trading to copy leading traders. | Open Account Now eToro Review Copy Trading does not amount to investment advice. The value of your investments may go up or down. Your capital is at risk. |
 | Multiple trading platforms and over 1,700 stocks. | Open Account Now XTB Review |
 | Reverse trades up to 1 hour with dealCancellation. | Open Account Now easyMarkets Review |
 | Established for 40+ years. | Open Account Now HYCM Review |
 | Up to 500:1 leverage for pro traders, share CFDs on stocks with no mark-up. | Open Account Now Pepperstone Review |
 | Proprietary technical analysis features. | Open Account Now Markets.com Review |
 | Up to 400:1 leverage available for professional traders. | Open Account Now AvaTrade Review |
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CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Between 50.00%-86.00% of retail investor accounts lose money when trading CFDs. You should consider whether you can afford to take the high risk of losing your money.
Reasons to Trade Corn
Traders speculate on the price of corn for a variety of reasons, but the following are most common:
- Bet on Ethanol Demand
- Bet on Chinese Demand
- Inflation Hedge
- Portfolio Diversification
Important: This is not investment advice. The arguments presented here for and against investing in this commodity are informational only. Always consult a professional advisor before making any investment decisions.
Betting on Ethanol Demand
Consumption of biofuels including ethanol is likely to grow in the years ahead, and trading in corn is a way to benefit from this trend.
Over 60 countries, including the European Union nations, have ethanol targets or mandates in place, and this number is expected to grow as more countries seek cleaner energy sources.
Speculating on Chinese Demand
Chinese demand for corn is likely to grow for many reasons including:
- China has targets in place to increase biofuel consumption in the years ahead.
- The country has over a billion people that it needs to feed.
- China’s growing wealth may lead to more meat consumption and greater demand for livestock feed.
How Does Corn Act as an Inflation Hedge?
Trading in corn is one way to protect yourself against inflation. Agricultural commodities, including corn, are certain to become more expensive if world economies experience bouts of inflation.
Overly accommodative monetary policies from the world’s largest central banks have kept global interest rates low and have created speculation in many different asset classes.
At some point, this speculation could show up in commodity markets, and corn prices could soar. A weak dollar, in particular, could create inflation and lead to higher corn prices.
Diversify Your Portfolio
Most traders are overly concentrated in stocks and bonds. Trading in corn provides traders with a diversification of risk in their portfolios.
Risks of Trading in Corn
However, traders should also consider the risks of trading in corn.
- An emerging market slowdown could seriously limit demand for corn.
- Advancements in green energy sources, such as solar, hydroelectric and wind power, could reduce demand for biofuels.
- Heavy subsidization could lead to overproduction of corn.
Important: This is not investment advice. The arguments presented here for and against investing in this commodity are informational only. Always consult a professional advisor before making any investment decisions.
What Do Experts Think About Corn?
Experts see reasons for both optimism and pessimism about corn prices in the future. On the one hand, there is a massive supply of the commodity, which is creating a serious overhang on the market:
There’s too much harvest yet to come, too much corn being stored on the ground that will be pushed into the pipeline early rather than later.
– Matthew M. Pierce, director of commodity consulting, Futures International LLC
However, despite the oversupply, there may be reasons for optimism. Jason Ward, director of grains and energy at Northstar Commodity, believes corn prices have room to move lower as excess supply gets absorbed by the market. However, he sees a silver lining in the ethanol market:
… a lot of ethanol plants are in expansion mode. We need all of that because these corn yields, this year, are unbelievable.
– Jason Ward, director of grains and energy, Northstar Commodity
Further Reading
- Learn More About Corn as a Commodity
- Learn to Trade Agricultural Commodities
- Find a Commodities Broker
Update history
This page was revised 3 times between January 2021 and April 2022.
Added capital at risk disclosure tag and refined wording in introduction for clarity.
Corrected "Agriculture" to "Agricultural" in navigation link text.
Simplified introductory content by removing redundant phrases and streamlining the "quick start" section heading.
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