Q:

What are Corn futures?

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Quick Answer

Corn futures are exchange-traded transactions in which a buyer and a seller agree specifically on a quantity of corn at a predetermined price on a future delivery date, according to The Options Guide. Prospective buyers often purchase corn futures when they believe the prices are likely to increase.

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Full Answer

The contract prices are quoted in dollars and cents. Euronext Corn futures specifically are traded in units of 50 tonnes, notes The Options Guide. CBOT corn futures are typically traded per bushel, with 127 metric tons equaling 5000 bushels. As evidenced by a corn futures chart posted on Barchart.com, the risk of trading corn futures is that some speculation comes into play.

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