Corn
Corn is the most liquid grain market seeing increasing demand in the food and energy industries. This guide to trading corn unpacks live prices and opening hours, plus popular trading strategies and market economics. See our list of the top corn brokers in the UK to start trading:
Best Corn Trading Brokers
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Founded in 2002 in Poland, XTB now serves more than 1 million clients. The forex and CFD broker combines a heavily regulated trading environment with an extensive selection of 6400+ assets and a commitment to trader satisfaction, featuring an intuitive in-house platform with superb tools to support aspiring traders.
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IC Markets is a globally recognized forex and CFD broker known for its excellent pricing, comprehensive range of trading instruments, and premium trading technology. Founded in 2007 and headquartered in Australia, the brokerage is regulated by the ASIC, CySEC and FSA, and has attracted more than 180,000 clients from over 200 countries.
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Established in Australia in 2010, Pepperstone is a top-rated forex and CFD broker with over 400,000 clients worldwide. It offers access to 1,300+ instruments on leading platforms MT4, MT5, cTrader and TradingView, maintaining low, transparent fees. Pepperstone is also regulated by trusted authorities like the FCA, ASIC, and CySEC, ensuring a secure environment for traders at all levels.
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RoboForex is an online broker, established in 2009 and registered with the IFSC in Belize. Traders can choose from five accounts (Prime, ECN, R StocksTrader, ProCent, Pro) catering to different needs with trades from 0.01 lots and spreads from 0 pips. RoboForex has also enhanced its offering over the years, adding CFD instruments and launching its stock trading platform, plus the CopyFX system.
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eToro is a top-rated multi-asset platform which offers trading services in thousands of CFDs, stocks and cryptoassets. Launched in 2007, the brand has millions of active traders globally and is authorized by tier one regulators, including the FCA and CySEC. The brand is particularly popular for its comprehensive social trading platform. Cryptoasset investing is highly volatile and unregulated in the UK and some EU countries. No consumer protection. Tax on profits may apply. 51% of retail CFD accounts lose money.
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OANDA is an award-winning global broker, established in 1996. The hugely respected brand offers competitive trading accounts and serves clients from 196 countries. It remains a popular option with both beginners and experienced traders thanks to its user-friendly and sophisticated web platform, no minimum deposit and premium currency products and services. The company is also overseen by reputable regulators, including the FCA, ASIC and CIRO.
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BlackBull is a New Zealand-based CFD broker with trading opportunities on forex, stocks, indices, commodities and cryptos. The broker supports the MetaTrader 4 and 5 platforms as well as TradingView, cTrader and a proprietary mobile app. Clients can trade with high leverage and tight spreads from 0 pips on the broker's ECN accounts.
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Established in 2008 and headquartered in Israel, Plus500 is a prominent brokerage that boasts over 25 million registered traders in over 50 countries. Specializing in CFD trading, the company offers an intuitive, proprietary platform and mobile app. It maintains competitive spreads and does not charge commissions or deposit or withdrawal fees. Plus500 also continues to shine as one of the most trusted brokers with licenses from reputable regulators, including the FCA, ASIC and CySEC.
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Fusion Markets is an online broker established in 2017 and regulated by the ASIC, VFSC and FSA. It is best known for its low-cost forex and CFD trading, although its multiple account types and copy trading solutions cater to a range of traders. New clients can sign up and start trading in 3 easy steps.
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Markets.com is a respected broker, offering multi-asset trading opportunities through CFDs or spread betting (UK only). Established in 2008, the brand has an impressive 4.3 million registered customers and is overseen by trusted regulators, including the FCA, ASIC and CySEC. 79.1% of retail accounts lose money.
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Trade.com is a trustworthy online broker with a global presence. The broker offers 2,100+ CFDs in major markets, as well as futures, options and more. The broker offers best-in-class platforms and superior analysis tools for experienced traders. The broker is also regulated by top-tier authorities including the FCA and CySEC.
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Grand Capital is a MetaTrader broker with welcome bonuses, trading competitions and an intuitive copy trading service. Several account types and 400+ assets provide trading opportunities for various types of investors and strategies. New users can also open an account and start trading in a matter of minutes.
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IronFX is a multi-regulated forex and CFD broker founded in 2010. This award-winning firm offers 500+ markets to over 1.5 million clients across 180 countries. Traders can access various account types with competitive pricing on the MT4 platform, as well as 24/5 customer support in 30 languages.
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Ingot Brokers is a multi-regulated brokerage established in 2006. The broker offers CFD trading opportunities on 1000+ instruments including forex, stocks, indices, commodities and cryptocurrencies. The broker supports the MetaTrader 4 and MetaTrader 5 platforms and offers both raw spreads and commission-free account options.
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Pacific Union Prime is an FSCA and offshore-regulated multi-asset broker offering competitive fees and direct market access on forex, commodities, stocks, bonds and indices. The broker supports the popular MetaTrader 4 and MetaTrader 5 platforms and a proprietary mobile app. Fees vary by account type with no commission and spreads from 1.9 pips on the Standard account and $7 commission per lot and spreads from 0.4 pips on the Prime account.
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MultiBank FX is an established broker offering forex and CFD products since 2005. With 20,000+ instruments, plenty of local payment methods and 24/7 multilingual customer support, the broker is a popular choice among traders globally. New clients can also access a variety of bonus offers and access the hugely popular MT4 and MT5 trading platforms.
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ActivTrades is a UK-headquartered CFD and forex broker established in 2001. The award-winning brokerage has secured licenses from trusted bodies, notably the UK’s FCA, and facilitates trading on over 1000 instruments spanning 7 asset classes, with over 93.60% of orders are executed at the requested price.
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SimpleFX is an online broker specializing in CFD and cryptocurrency trading, with multi-currency accounts, STP execution, low pricing and no minimum deposit. Bringing innovation and gaining recognition at numerous industry events since 2014, SimpleFX now caters to retail traders from over 190 countries, boasting a client base exceeding 200,000 active users.
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Fortrade is a multi-asset, multi-regulated broker with branches regulated by the FCA, CySEC and ASIC among others. The brand offers trading opportunities on a wide range of instruments including stocks, bonds, commodities, forex, indices, cryptocurrencies and ETFs, with competitive fees and support for MetaTrader 4 and a proprietary platform.
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Established in 2005 in Australia, FP Markets is an ASIC- and CySEC-regulated broker boasting an extensive suite of tradable assets. Its Standard and Raw accounts cater to traders at every level, while it packs a punch in the tooling department, from the MetaTrader suite and intuitive TradingView to actionable trading ideas from Trading Central and AutoChartist.
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Saxo Markets is a multi-award-winning trading brokerage, investment firm and regulated bank. With a huge 72,000+ trading instruments, plus investment products and managed portfolios, clients have no shortage of opportunities. The trusted brand also offers transparent pricing and top-tier regulatory protection from 10+ agencies including FINMA, FCA & ASIC.
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Amega is an offshore STP broker offering CFD trading fon forex, stocks, indices and commodities with very high leverage up to 1:1000 and a zero-commission pricing structure. Traders access markets through the MT5 platform and can test the broker's services through a demo account.
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Capital.com offer CFDs on a range of markets with competitive spreads and zero commissions. The broker also offers the Investmate app, negative balance protection and leveraged trading.
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Trading 212 is a European and UK-regulated CFD broker that also offers stock investing and ISAs. It’s best known for its commission-free trading model and beginner-friendly app, which has helped it attract 2.5 million users and £3.5 billion in client assets.
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LegacyFX is a multi-asset broker offering an MT5 download & free signals.
How Does Corn Trading Work?
Corn trading refers to the buying and selling of corn in the commodities marketplace. Buyers and sellers typically trade corn futures, which are agreements to buy or sell a specific amount of corn at a predetermined price and date in the future. These contracts allow investors to speculate on the future price of corn, and can be bought and sold on commodity exchanges such as the Chicago Mercantile Exchange (CME) and the New York Mercantile Exchange (NYMEX).
Alternatively, the top corn brokers offer derivatives like CFDs that allow retail traders to go long or short on the price of corn without taking delivery of bushels of the grain.
Corn is one of the most widely produced and traded agricultural commodities in the world, and is used in many industries like food and beverage production, animal feed, and biofuel.
The price of corn can be influenced by various factors, like weather conditions, supply and demand, geopolitical events, and government policies.
History
Corn has been an important crop for thousands of years, with commodity use dating back to ancient times. However, the modern corn trading industry emerged in the 19th century, with the development of commodity exchanges and futures markets.
The Chicago Board of Trade (CBOT) was founded in 1848 and quickly became the primary marketplace for corn trading. Initially, corn traders at the CBOT would buy and sell physical corn directly with farmers and grain elevators, but in the late 19th century, futures contracts were introduced as a way to manage risk and stabilise prices over upcoming months and years.
By the early 20th century, corn futures became integral to the global commodities market, and were traded on exchanges around the world. The introduction of new technologies, such as telegraphs and later computers, helped to facilitate faster and more efficient corn trading.
Today, corn remains a widely traded agricultural commodity, with futures traded on exchanges such as the CME Group and the Intercontinental Exchange
Corn Price Chart
Note, the corn trading symbol may change at different brokers and platforms.
What Influences The Price of Corn?
- Weather conditions: Corn supply is sensitive to weather conditions, temperature, precipitation, and other weather patterns, which can impact crop yields and supply. In 2019, the UK’s Department for Environment, Food and Rural Affairs (DEFRA) reported that the country’s corn production had decreased due to a dry spring and summer. This led to a rise in corn prices, which affected UK farmers and traders who rely on the domestic corn market.
- Supply & demand: Corn is used in several industries, and changes in demand impact the price of corn. In 2020, the COVID-19 pandemic caused disruptions in the global supply chain, creating a shortage of corn-based products in the UK, amongst other countries. A decrease in corn production and logistical issues in transporting corn to the UK resulted in corn prices rising.
- Ethanol production: Ethanol is a biofuel that is made from corn in many countries, including the United States. Changes in the demand for ethanol can have a direct impact on the price of corn at online brokers.
- Government policies: Governments around the world often implement policies that impact the price of corn, such as subsidies, tariffs, and import/export regulations.
- Currency exchange rates: Corn is a globally traded commodity, and changes in exchange rates between currencies can impact the price of corn in different countries, including at UK brokers.
- Competition from other crops: Corn competes with other crops, such as soybeans for acreage and resources. Changes in the price of these competing crops can impact the price of corn.
- Current events: Major events can impact corn trading prices at brokers. For example, in 2017, Brexit had an impact on corn; the value of the British pound dropped significantly, making imports of corn more expensive for UK buyers. This led to higher prices for corn-based products, affecting UK consumers and businesses.
How To Trade Corn
Investors can speculate on corn prices through several vehicles:
- Shares of Agricultural Companies: Traders can invest in the shares of companies involved in the production, processing, or distribution of corn, such as agricultural machinery manufacturers or food and beverage companies that use corn as a primary ingredient. Publicly-traded companies operating in the corn industry include Archer-Daniels-Midland Company (ADM) and Ingredion Incorporated (INGR).
- Contracts for Difference: Popular with retail investors, CFDs allow traders to speculate on rising and falling prices of corn without taking ownership of bushels of the grain. Leverage also enables traders to increase their purchasing power with a small cash deposit.
- Futures: Futures or mini futures contracts are agreements to buy or sell a specific amount of corn at an agreed price and date in the future. Corn futures are traded on major exchanges such as the Chicago Mercantile Exchange (CME) and the Intercontinental Exchange (ICE).
- Options: Options contracts give traders the right, but not the obligation, to buy or sell corn at a certain price at a future date. Options contracts can be used to manage risk and speculate on the future price of corn.
- Exchange-Traded Funds: ETFs that track the price of the corn sector or corn-related companies can be traded on major stock exchanges, such as the NYSE or NASDAQ.
- Over-the-Counter (OTC): OTC markets are decentralised trading venues allowing buyers and sellers to trade directly with each other, without going through a centralised exchange. OTC trading of corn and other commodities is typically conducted through online brokers and dealers.
XTB Corn Trading Conditions
Why Trade Corn?
- High Liquidity: Corn is one of the most heavily traded commodities, and therefore there is high liquidity in corn futures and options markets, making it easy for traders to buy and sell contracts at competitive prices.
- Price Transparency: The price of corn is widely reported and tracked, allowing traders to access real-time market data and make informed trading decisions.
- Diversification: Corn is globally traded and can be used to diversify portfolios. By investing in corn futures or related exchange-traded funds (ETFs), for example, traders can spread their risk across a variety of asset classes and trading vehicles.
- Risk Management: Corn futures can be used as a hedging tool. For example, a farmer may use futures contracts to lock in a guaranteed price for their crop before it is even harvested, providing protection against price fluctuations. Equally, traders can use corn as a hedge against other markets.
- Transparency: Trading corn contracts is often conducted on regulated exchanges, which provides transparency and standardised contract terms.
Risks Of Trading Corn
- Price Volatility: The price of corn can be volatile, influenced by a range of factors such as weather, supply and demand, and geopolitical events. This can create uncertainty and risk resulting in losses if traders make incorrect forecasts.
- Weather Risk: Corn is highly dependent on weather conditions, which have an impact on crop yields and supply. This makes the market unpredictable and harder for traders to predict future price movements.
- Margin Requirements: Derivative contracts require traders to maintain margin at their corn brokers to cover potential losses. This can be a significant financial commitment.
- Market Manipulation: The corn market is susceptible to manipulation by traders or other market participants. This can create artificially high or low prices and risk for beginner traders.
- Regulatory Risk: Changes in government policies or regulations can impact prices and corn trading activity at leading brokers and platforms.
Strategies
- Seasonal Trading: Analysing historical price data can help identify seasonal trends in the corn market. For example, if the price of corn tends to rise in the spring when planting season begins, a trader may look to buy corn futures contracts in the winter in anticipation of this price increase.
- Spread Trading: Spread trading involves simultaneously buying and selling related contracts to profit from price differentials. For example, a trader may buy a corn futures contract for delivery in December and simultaneously sell a corn futures contract for delivery in March, with the expectation that the price difference between the two contracts will narrow.
- Technical Analysis: Analysing historical price data and identifying patterns or trends in the corn market can inform trading decisions. Traders using technical analysis may use historical charts, trendlines, and technical indicators to identify potential entry and exit points. TradingView is a popular charting tool for corn trading.
- Fundamental Analysis: Analysing supply and demand factors help inform corn trading forecasts. This includes assessing weather forecasts, government reports on crop yields, and global demand for corn-based products.
- News Trading: News trading involves monitoring events and updates that influence the corn market, like weather forecasts, crop reports, or political developments. Traders using this strategy may enter or exit trades based on or in anticipation of the latest crop trading news.
Note, corn brokers may have restrictions on the strategies that can be used on their trading platforms.
Corn Trading Times
Trading times are traditionally based on the schedule of the Chicago Mercantile Exchange (CME), which is where corn futures are primarily traded. The CME operates on Central Time with corn futures trading hours:
- Monday – Friday: 8:30 AM – 1:20 PM CT
- Sunday: 7:00 PM – 7:45 AM CT, then 8:30 AM – 1:20 PM CT
Note that these trading times apply to corn futures contracts. Other forms of corn trading, such as CFDs or corn-related stocks, may have different trading hours.
Some corn brokers also offer extended trading hours or pre-market trading. Trading hours may be subject to change due to market holidays or other events.
Bottom Line On Corn Trading
Corn trading can be lucrative for traders looking to invest in agricultural commodities. Understanding the factors that influence corn prices, such as weather patterns, supply and demand, and government policies, is key to successful corn trading. Investors can trade corn through multiple vehicles, including CFDs, ETFs, futures and options.
Head to our ranking of the best corn brokers to start trading.
FAQ
What Is Corn Trading?
Corn trading involves buying and selling the grain either via spot or derivatives like futures, options and CFDs. Traders can also speculate in the shares of publicly-traded companies that operate in the production, distribution and marketing of corn.
What Factors Influence The Price Of Corn?
Corn prices are influenced by a range of factors, including weather patterns, supply and demand, government policies, global trade dynamics, and more. Key drivers are Chinese demand and production in major countries like Brazil. Understanding these factors is key to building a successful corn trading strategy.
What Are The Risks Of Trading Corn?
Like any online trading opportunity, investing in corn involves risks. This includes market volatility due to unforeseen weather events and geopolitical events that cause supply chain issues, such as the Russia-Ukraine war. Corn exports from Ukraine were down approximately 20% in 2022, pushing up prices. Corn trading limits and halts may also impact strategies.
What Are Popular Corn Trading Strategies?
Popular corn trading strategies include seasonal trading, trend-following approaches, technical analysis, and spread trading. However, investors should develop a corn trading plan that aligns with their risk tolerance, investing style, and market outlook.
How Do I Choose A Corn Trading Broker?
When comparing corn brokers, consider the availability of futures, options and CFDs, spreads and fees, execution speeds, access to commodity data, and a license from the UK’s Financial Conduct Authority (FCA). Alternatively, choose from our list of the best corn trading brokers.