Corn Exchanges
- Details
- Category: Commodity
Commodities are traded primarily based on margin, and the margin changes based on market volatility and the present face worth of the contract. For example, to trade a corn contract on the Chicago Board of Commerce (CBOT), a trader may be required to keepup a margin of $1,350, which is approximately 4.5% of the face value
Corn Exchanges
Corn is traded in an open outcry format and electronically via the Chicago Mercantile Change (CME) Group (CME, e-CBOT), the Brazilian Mercantile and Futures Change (BM&F), Mercado a Termino de Buenos Aires (MATba), Dalian Commodity Change (DCE), Kansai Commodities Alternate (KANEX), National Commodity and Derivatives Change (NCDEX) and the Tokyo Grain Alternate (TGE).
Information About Production
Approximately 525 million metric tons of corn is produced annually. The U.S. is the leading producer, with almost 260 million metric tons. China is a detailed second, producing more than one hundred ten million metric tons a year. Brazil is a really far third, producing 37.5 million metric tons annually. The only other grains that come near corn by way of manufacturing are rice and wheat.
Despite the widely various uses for corn, it is nonetheless primarily used as livestock feed. Throughout the U.S., cattle, hen and hog ranchers depend on corn to keep up and fatten their livestock. A small portion of corn is diverted into corn syrup, new plastics and alcohol, and corn is also diverted to provide ethanol to create a cleaner, inexpensive fuel source.