Grain Futures Markets
Millions of grain futures contracts are traded around the world each day. Our team of market strategists are well versed in both domestic and global fundamental supply/demand dynamics, and technical price levels, driving activity in the grain markets. In essence, we take a “Quanti-mental” approach to analyzing and trading corn, the soybean complex, wheat complex, oats, and rough rice. Whether you’re a new trader just starting out, or a seasoned veteran, we’re here to help you formalize and deploy personalized trading strategies based on your personal market preferences, risk tolerance, and time horizon.
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Futures Market Research & News
View all of our exclusive grains futures market content here.
View all of our featured grains market content including news on soybeans, corn, wheat, and more here.
Introduction to Grains
Why you should consider trading grain futures and options?
Commodities have gained a lot of attention over the last several years, with grain markets such as corn and wheat taking center stage following Russia’s invasion of Ukraine. Many traders, investors, and hedgers quickly realized that the war would have a big impact on global production and trade flows (imports/exports) which sent prices screaming higher. Many new market participants are now realizing that.Read More What is a Grain Futures Contract?
101 Grain Facts
Learn all that Grains have to offer!
1. The United States is the world’s largest producer of corn (2. China, 3. Brazil, 4. Argentina, 5. Ukraine)
2. Corn is the largest crop in the United States, accounting for about 90 million acres.
3. Illinois produces the most soybeans in the United States (2. Iowa, 3. Minnesota, 4. Nebraska, 5. Indiana)
View all of our featured grains market videos including news on soybeans, corn, wheat, and more here.
Grain Futures FAQ
What is going on in the Grain Futures Market?
If the grain futures markets are open, then so are we! Our team of dedicated market strategists are more than happy to provide our market outlook and proprietary grains research to all current and prospective market participants. Whether you’ve traded grain futures before, or are brand new to the markets, we are here to help. Call in to our trade desk at (312) 858-7305 to receive the latest developments on the happenings of the grain markets.
Do Grain Futures Contracts Require Margin?
Yes. Each grain contract traded through the CME Group has both an initial margin requirement and a maintenance margin requirement. In order to enter a position, an account holder must have adequate risk capital allocated in their account to meet the initial margin requirements for the contract of interest. In the case that an account holder has an open position, and their open equity passes through the maintenance margin requirement, they will have to post additional risk capital in order to meet the initial margin requirement.
Who Trades Grain Futures?
There are a myriad of different types of active market participants in grain futures. Market participants vary tremendously in size and interest, but all participants are essential in the price discovery process. Typically, market participants are bundled into one of two categories: speculative or hedging. Speculators range in size from individual traders all the way up to institutional funds. The hedging side is a little more intricate, and can be broken down in accordance with each individual grain’s supply chain. On the production side, farmers and ranchers are active participants usually looking to mitigate their downside risk. Intermediaries like grain elevators, ethanol production facilities, and soybean processing facilities, have exposure on both sides of the market as they must purchase the physical grain, and then ultimately sell a value-added product from that grain. End users, like food manufacturing enterprises, look to mitigate their upside exposure as to minimize their net-commodity expenditures.
How Do You Trade Grain Futures?
Every individual has a unique personality, and perspective. Similarly, every trader has their own personality and opinions on the markets. In order to make the most out of trading grain futures, one must define their goals ahead of time. Are you looking to trade the markets on an active, daily basis? Or are you looking to test your hypothesis over an extended period of time? Ultimately, traders must determine their objectives, market preference, and risk tolerance ahead of time. If you’re looking to jump into futures trading for the first time, our team of Sr. Market Strategists are available to help you define these parameters, and help you build personalized strategies off of those specific factors. Reach out to us – we will be happy to provide you with a complimentary free trial, and supplement that with proprietary grain market research
What Are The Most Popular Grain Futures Contracts?
There is an old adage that says, “Corn is King”. While it’s true that corn contracts have historically had the highest volume and open interest of the grain markets, the markets have become increasingly more dynamic. Other contracts like soybeans, soybean oil, soybean meal, wheat, and oats have grown in popularity with the proliferation of electronic trading. All clients at Blue Line Futures are equipped with both web and mobile trading platforms, in addition to our market research. Whichever market you’re most interested in,
What are grain futures?
Grain futures are standardized, legally-binding, contracts for the delivery of a particular grain. Each contract has uniform specifications for the underlying commodity, and has a publicly known expiration date and settlement price. The most commonly traded grain futures contracts are corn, soybeans, wheat, oats, rough rice and canola. Corn, soybeans, and wheat each have contract sizes of 5,000 bushels, and the minimum price increment is a ¼ cent. Almost all of the grain futures contracts traded in the United States are cleared through the CME Group, but there are millions of grain futures contracts traded each day on different futures exchanges around the globe. Contracts are offered for a number of months throughout the calendar year, and each of the grain contracts can be physically settled. Physically settled futures contracts have their own delivery processes and requirements, but market participants holding their contracts beyond the expiration date of the associated contract may be required to either deliver grain meeting the contract’s specifications, or purchase the physical grain. If you’d like to learn more about grain futures, take a look at our educational platform, Blue Line University, or some of our educational videos covering the grains markets.
What is the Chicago Board of Trade (CBOT)?
The Chicago Board of Trade (CBOT) is the oldest commodity exchange in the United States, and is the beating heart of the American agricultural commodities markets. When the Board of Trade opened its doors in 1864, the first standardized contracts traded were corn, wheat, cattle and pigs. At its core, the Board of Trade served as a centralized location for buyers and sellers to negotiate forward contracts in an open-outcry setting. While the days of the open-outcry trading pits have passed, the Roman goddess of agriculture, Ceres, still stands atop the building today. The Chicago Board of Trade became the home of Blue Line Futures in 2017. Currently located on the 26th floor, our dedicated team of market strategists is proud to assist market participants in navigating the grain and livestock futures markets. Whether you’re speculating the markets, or mitigating exposure to commodity price risk, we will help you personalize a strategy to navigate the markets.
Learn More With Blue Line University
Knowledge is power. Test your applied knowledge of the grain markets, or learn more about each grain contract’s dynamics through our educational platform. Do you have questions about how to analyze supply and demand data for the corn market? Or want to know how to trade a crush spread? We’re here to help – give our trade desk a call at (312) 858-0500, and we’ll answer any questions you may have.
Introduction to Agriculture
Get a basic yet critical overview of agricultural futures and options markets. Learn who uses these contracts, how they work, and how participants use them.
Sign up for Seasonals
Blue Line Futures now offers seasonal history for commodity futures contracts powered by MRCI. Manage your exposure to equity indexes or adjust your trading positions by utilizing a broad range of liquid and diverse Equity Index futures and options.Learn more about our Seasonal Trends