# Corn

> Corn is the largest US crop, used for feed, ethanol and exports. Learn corn futures, the crop calendar, USDA reports, key demand sources and what moves prices.

Source: https://learn.tradelabsai.com/commodities/corn/  
Track: Commodities · Level: Intermediate · Updated: 2026-10-03  
Publisher: TradeLabs AI (https://tradelabsai.com). Education, not financial advice.  
Cite as: TradeLabs Learn, "Corn", https://learn.tradelabsai.com/commodities/corn/

Corn is the most widely grown grain in the United States and one of the most actively traded agricultural futures in the world. It feeds livestock, is turned into ethanol fuel, sweeteners and starches, and is exported around the globe. The US is the largest producer and a leading exporter, followed by Brazil, Argentina and Ukraine as major exporters, while China is a huge producer and consumer. Corn prices respond to weather, acreage decisions, energy policy and global trade.

## The contract

| Feature | CBOT corn futures (ZC) |
|---|---|
| Size | 5,000 bushels |
| Quote | Cents per bushel |
| Tick | 1/4 cent per bushel = $12.50 |
| Months | March, May, July, September, December |
| Delivery | Physical, via shipping certificates on the Illinois River |
| Mini contract | 1,000 bushels (XC) |

A 10 cent move in corn is $500 per contract. See [Tick Size and Tick Value](https://learn.tradelabsai.com/futures/tick-size-and-tick-value/).

## Demand

| Use | Approximate share of US use |
|---|---|
| Animal feed and residual | About 35% to 40% |
| Ethanol | About 35% |
| Exports | About 15% to 20% |
| Food, seed and industrial (sweeteners, starch) | About 10% |

Approximate recent shares from USDA data; they vary by year. US ethanol mandates under the Renewable Fuel Standard tie corn demand to energy policy and gasoline consumption.

## The crop calendar

| Period | Stage | Market focus |
|---|---|---|
| March | Prospective Plantings report | Expected acres |
| April to May | Planting | Planting pace, wet or dry conditions |
| June | Acreage report (end of June) | Actual acres |
| July | Pollination | Critical weather; heat and drought risk |
| August | Grain fill; USDA yield estimates | Yield forecasts |
| September to November | Harvest | Harvest pressure, final yields |

See [Seasonality in Commodities](https://learn.tradelabsai.com/commodities/seasonality-in-commodities/).

**Example: The 2012 drought**
In summer 2012, a severe drought hit the US Corn Belt during pollination. Crop condition ratings collapsed, and the USDA slashed yield estimates. December corn futures rose from around $5 a bushel in June to above $8 in August, a record at the time. Livestock producers and ethanol plants faced soaring costs. The episode shows how weather in a few critical weeks can reshape the market. See [Storage and Inventories](https://learn.tradelabsai.com/commodities/storage-and-inventories/).

## What moves corn prices

- **US weather** during planting, pollination and grain fill.
- **South American crops:** Brazil's second crop ("safrinha") corn has become a major export source.
- **USDA reports:** WASDE, Acreage, Grain Stocks and Crop Progress. See [Agricultural Markets](https://learn.tradelabsai.com/commodities/agricultural-markets/).
- **Ethanol demand and energy prices.** See [Crude Oil](https://learn.tradelabsai.com/commodities/crude-oil/).
- **Export demand,** especially from Mexico, Japan, China and others.
- **The US dollar** and competing exporters' currencies.
- **Stocks to use ratio:** low ratios are associated with high prices.

## Corn and other markets

- **Soybeans:** farmers choose between corn and soybeans for their acres; the soybean to corn price ratio influences planting decisions. A ratio above about 2.3 to 2.5 has tended to favour soybeans. See [Soybeans](https://learn.tradelabsai.com/commodities/soybeans/).
- **Wheat:** corn and wheat can substitute in animal feed. See [Wheat](https://learn.tradelabsai.com/commodities/wheat/).
- **Livestock:** feed costs affect cattle and hog production.

## Trading corn

- **Outright futures and options,** including weekly options during the growing season.
- **Calendar spreads** such as July versus December, old crop versus new crop. See [Calendar Spreads in Futures](https://learn.tradelabsai.com/futures/calendar-spreads-in-futures/).
- **Inter commodity spreads** with soybeans and wheat.
- **Weather based trading** using forecasts and crop condition data.

## Risks

- **Weather shocks** and limit moves.
- **Report surprises** from USDA.
- **Policy changes** in ethanol mandates or trade relations.

## Frequently asked questions

### What is corn used for?

Mainly animal feed, ethanol fuel, exports and food and industrial products such as sweeteners and starch.

### When is corn most volatile?

Often during the summer growing season, especially in July around pollination, and around major USDA reports.

### What is the soybean to corn ratio?

The price of soybeans divided by the price of corn, which influences how many acres farmers plant of each crop.

Next, learn about the world's most traded food grain in [Wheat](https://learn.tradelabsai.com/commodities/wheat/).

## Continue learning

- Next lesson: [Wheat](https://learn.tradelabsai.com/commodities/wheat/)
- Previous lesson: [Agricultural Markets](https://learn.tradelabsai.com/commodities/agricultural-markets/)
- Related: [Agricultural Markets](https://learn.tradelabsai.com/commodities/agricultural-markets/): Agricultural markets cover grains, oilseeds, softs and livestock. Learn the main contracts, the USDA reports that move them, weather, seasonality and trade policy.
- Related: [Soybeans](https://learn.tradelabsai.com/commodities/soybeans/): Soybeans are crushed into meal for feed and oil for food and biofuels. Learn soybean futures, Brazil vs US supply, China's demand, the crush and key price drivers.
- Related: [Wheat](https://learn.tradelabsai.com/commodities/wheat/): Wheat is a global staple with several classes and many exporting countries. Learn Chicago and Kansas City wheat futures, the Black Sea's role and price drivers.
- Related: [Seasonality in Commodities](https://learn.tradelabsai.com/commodities/seasonality-in-commodities/): Many commodities follow seasonal patterns tied to weather, harvests and demand. Learn key patterns in grains, energy and softs, how to measure them and their limits.
- Related: [Storage and Inventories](https://learn.tradelabsai.com/commodities/storage-and-inventories/): Inventories are the buffer between commodity supply and demand. Learn the theory of storage, how stocks affect prices and curves, and the key inventory reports.