The global producers of corn consist of the nations who have the proper growing conditions: moderate climate and sufficient soil nutrition are necessary.  For this reason, global production and exports are concentrated amongst a few nations.  The global consumers, differing from the producers, are numerous because corn is consumed all around the world, not just where it can grow.  The importing nations each make up a smaller individual percentage of global imports.

Last year the top 3 exporters, the U.S., Argentina, and Brazil, accounted for 88% of global exports.  The U.S. is by far the largest producer and exporter of corn accounting for 43% and 63% of global figures respectively.  Global exports are dominated by a select few nations, which is not the case for the importers.  The top 3 importing nations, Japan, Mexico, and S. Korea, made up only 37% of global imports.  Issues affecting these markets are strong driving factors of price movements.  Overall, corn traded on the global market accounted for 12.5% of global consumption.  When trading corn futures, the supply and its shortages and gluts of both exporting and importing nations may create price opportunities.  You have to first have a thorough understanding of corn futures and then decide which contract best suits your financial and risk tolerance levels.

The contract specifications of a standard corn future contract traded on the CME are as follows:

a)      one corn future contract equals 5,000 bushels
b)      minimum tick is ¼ cent/bushel or $12.50/contract
c)      contract months are Dec., Mar, May, July, and Sep.
d)     daily price limit is 30 cents
e)      outright speculative margin is $2,025 per contract

A tool that is great for new traders is the mini-sized corn future contract.  Using the mini corn future contract allows for you to possibly reduce your risk-reward scenario.  As a beginning trader, you are possibly going to make mistakes.  One of the most important decisions you may make in the futures trading business is to minimize losses in order to stay in the game long enough to obtain the necessary knowledge required to trade futures successfully.  Another benefit is the smaller margin requirements.  Everyone has bills: rent/mortgage, kids, education, etc.  These financial obligations may limit your ability to trade the larger corn futures contract.  The mini corn future contract potentially allows you to begin trading with less capital than you would otherwise need.  Its contract specifications are as follows:

a)      one mini corn future contract equals 1,000 bushels
b)      minimum tick is 1/8 cent/bushel of $1.25/contract
c)      contract months are Dec., Mar, May, July, and Sep.
d)     daily price limit is 30 cents
e)     outright speculative margin is $405 per contract

Trading in futures and options involves a substantial risk of loss and is not suitable for all investors. Past performance is not necessarily indicative of future results.