CME Group Corn

From MarketsWiki

CME Group corn futures and options trade both by open outcry and by electronic trading. During what are called "regular trading hours" (RTH), corn futures trade side by side on Globex and on the trading floor, while options trade only on the trading floor. During electronic trading hours (ETH), both corn futures and options are traded.

CME Group corn futures and options migrated from the eCBOT trading platform to CME Globex on the evening of January 13, 2008.

Contents 1 Commitment of Traders 2 Uses 3 Contract Specifications 4 Notes 5 Also See 6 Resources 7 References

Commitment of Traders

The Commodity Futures Trading Commission regularly issues Commitments of Traders reports that show the distribution of open positions among different classes of traders. Information about corn positions is available in this report.^[1]

Uses

Corn's greatest use is feed for livestock and poultry. Corn is also used in many everyday food for humans, including corn oil for margarine, cornstarch for gravy and corn sweeteners for soft drinks. Additionally, corn is increasingly used in the production of ethanol. Other non-food uses of corn include in absorbing agents for disposable diapers and adhesives for paper products.^[2]

Contract Specifications

Corn futures
Exchange	CME Group
Settlement	Physically delivered
Trade Unit	5,000 bushels (deliverable grades: No. 2 Yellow at par, No. 1 yellow at 1-1/2 cents per bushel over contract price, No. 3 yellow at 1-1/2 cents per bushel under contract price)
Point Value	Need point value!
Tick Value	1/4 cent per bushel ($12.50/contract)
Contract Months	Mar, May, Jul, Sep, Dec
Last Trading Day	The business day prior to the 15th calendar day of the contract month.
	Open Outcry	Electronic
Trading Hours	9:30 a.m. - 1:15 p.m. Central Time, Mon-Fri. Trading in expiring contracts closes at noon on the last trading day.	6:00 p.m. - 6:00 a.m. and 9:30 a.m. - 1:15 p.m. Central Time, Sun.-Fri. Trading in expiring contracts closes at noon on the last trading day.
Ticker Symbol	C	ZC
Price Limits	Twenty cents ($0.30) per bushel ($1,500/contract) above or below the previous day's settlement price (effective March 28, 2008). No limit in the spot month (limits are lifted beginning on First Position Day).	Twenty cents ($0.30) per bushel ($1,500/contract) above or below the previous day's settlement price (effective March 28, 2008). No limit in the spot month (limits are lifted beginning on First Position Day).
Corn options
Trade Unit	One futures contract
Point Value	Need point value!
Tick Value	1/8 cent per bushel ($6.25/contract)
Option Months	Dec, Mar, May, Jul, Sep; a monthly (serial) option contract is listed when the front month is not a standard option contract. The monthly option contract exercises into the nearby futures contract. For example, an August option exercises into a September futures position.
Strike Prices	5 cents/bushel for the first two months and 10 cents/bushel for all other months. At the commencement of trading, list 5 strikes above and 5 strikes below the at-the-money.
Exercise Style	American exercise: The buyer of a futures option may exercise the option on any business day prior to expiration by giving notice to the CME Group clearing house by 6:00 p.m. Chicago time. Option exercise results in an underlying futures market position. Options in-the-money on the last day of trading are automatically exercised.
Option Expiration Day	Need OED rules!
	Open Outcry	Electronic
Trading Hours	9:30 a.m. - 1:15 p.m. Central Time, Mon-Fri	6:00 p.m. - 6:00 a.m. Central Time, Sun.-Fri.
Ticker Symbol	CY for calls/PY for puts	OZC
Price Limits	Thirty cents ($0.30) per bushel ($1,500/contract) above or below the previous day's settlement premium (effective March 28, 2008). Limits are lifted on the last trading day.	Thirty cents ($0.30) per bushel ($1,500/contract) above or below the previous day's settlement premium (effective March 28, 2008). Limits are lifted on the last trading day.

Notes

Also See

CME Group commodity products

Resources

CME Group Web site

References

1. ↑ Commitments of Traders. Commodity Futures Trading Commission. Retrieved on January 11, 2008.
2. ↑ CBOT Agricultural Products. Chicago Board of Trade. Retrieved on January 12, 2008.