Information About U.S. and Worldwide Corn Supplies and How to Trade CBOT - Corn Futures for Profits
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Throughout the history of mankind, corn had been considered very valuable because of the profits it brings. It is often referred as the other yellow gold. Apart from profits corn gives, it is also a great source of energy and quality food. Early Indians that migrated from the Eastern Asia were the ones who brought corn to America, in south specifically. During that time, Americans use corn plants as source for everything from making primitive beer to making clothes.
. . . Next to wheat, corn is the second most cultivated plant in the world. Corn futures are one of the original grain futures contracts. Its trading began during the 18th century in Chicago in America, the same time when cotton trading began. The role of corn market in the production of ethanol had increased its demand due to the high prices of petroleum products. According to experts, if the prices of crude oil stay high, ethanol is economically feasible to be added and produced to unleaded gasoline.
There are many different uses for corn as well as many different products made from it that people are not aware of. Among these products include cardboard, construction materials, adhesives, metal plating, lubricating agents, laminated building products, aspiring, and antibiotics. Because of these diverse applications and benefits, corn makes the corn options and corn futures market very important to the corn industry. Many knowledgeable farmers use corn options and corn futures markets to protect their crops against unfavorable price movements.
How many times in a day does an average American consumer uses products made from corn? One can fill up his or her car up with ethanol combined with fuel. A soda during lunch time that is sweetened with a corn sweetener. Maybe you have a comforter or pillow made from corn fiber. There are the pot roasts for dinner that is fed with corned beef. Because of such benefits, the corn future contracts have been more popular because of their relative leverage and liquidity.
Trade the CBOT Corn commodity contract or other commodity futures grain markets using your corn trading-system for as long as desired.
Since many of the commodities such as oats, soybeans, and wheat are being hit hard by the financial crisis of today, it would be a good opportunity to buy corn futures even if it is high in price. When we say corn futures, it refers to the exchange-traded and standardized contracts that a contract buyer agrees to take delivery from seller at a predetermined price, specific quantity of corn, and on a future delivery date. One can do corn futures trading at the Chicago Board of Trade or CBOT, Tokyo Grain Exchange or TGE, and NYSE Euro next. The prices of corn futures in CBOT are quoted in cents and dollars per bushel.
Producers and consumers of corns can manage the price risks of corn by buying and selling corn futures. They can also employ a short enclose to lock the selling price for the corn being produced. Meanwhile, businesses that require corn can use a long protection to secure the buying price for the commodity they require.
The corn futures are also traded by speculators who assume that the price risks that protectors try to avoid in return for potential profits from substantial movement of corn prices. Many speculators buy corn futures when the prices are high and eventually sell the futures if the prices are low.