Corn is one of the most popular trading instruments. Among commodities, only oil is ahead of it. The leading producers of corn are the USA, China, Brazil, Mexico, Indonesia, India, and France. Corn futures are traded on the largest international commodity exchanges, including CME, Eurex, LCE, TOCOM, and others.
Corn quotes are cyclical. As a rule, before the start of the harvesting campaign, its cost decreases and reaches a minimum by the end of September. This is because farmers need to free up granaries for a new crop, and the old one needs to be urgently sold. By December, CORN quotes begin to recover. Traders must consider this information in long-term trading to get the maximum profit.
When trading CORN, it is important to track WASDE reports by the United States Department of Agriculture, corn stock data, and harvest progress, including corn quality and export shipments. If the amount of corn harvested increases compared to previous periods, its value will decrease. The high quality of corn leads to increased demand from consumers and investors, contributing to the CORN rate's growth.
It is also important to monitor the state of the chemical industry and agriculture. Corn is essential in producing ethanol, which is used as a biofuel. Corn is also used as feed for livestock. As the world's population grows, more food, including animal products, is needed. The global shift to clean energy and growing demand for feed serves as bullish drivers for the CORN rate.
Risk warning: Trading in FX and CFDs entails high risk of losing capital.
