Author Question: CME Corn Futures - Quotes MonthLastChangePrior ... (Read 100 times)

vicotolentino · **on:** Apr 25, 2021

CME Corn Futures - Quotes

Month	Last	Change	Prior Settle	Open	High	Low	Volume
Dec	639'0	+0'4	638'4	638'0	644'6	636'0	17,091
Mar	648'0	+0'2	647'6	647'4	654'0	645'2	11,192
May	655'0	+0'4	654'4	654'4	661'0	652'4	2,535
July	657'0 a	+0'6	656'2	656'2	663'4	655'0	1,926
Sep	601'4 a	-1'6	603'2	603'0	607'2	601'0 a	200

The table above shows information on CME corn futures contracts. Prices are in cents per bushel with a minimum tick size of 1/4 cent per bushel. Thus, a price of quote of 601'4 is equivalent to $6.015 per bushel. There are 5,000 bushels per contract. Mr. Greenjeans grows corn on 2,000 acres near Sioux City, Iowa. He expects to harvest 165 bushels per acre or 330,000 bushels in total. Mr. Greenjeans hopes to sell his corn for $6.015 per bushel when he harvests it in September, and he wants to use September corn futures contracts to limit his price exposure.

In what direction should he trade the futures contract, and is he hedging or speculating?
◦ Long, Hedge
◦ Short, Hedge
◦ Long, Speculating
◦ Short, Speculating

tmlewis4706 · **Reply #1 on:** Apr 25, 2021

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