Corn (ZC)

America's golden grain. Corn feeds livestock, fuels cars, and sweetens food products across the globe.

2-Minute Beginner Summary

Corn is the most produced grain in the world. The U.S. is the largest producer, and most corn goes to animal feed and ethanol. Prices are driven by weather during the growing season, export demand, and ethanol policy. A drought in the Midwest can spike corn prices globally.

What Is Corn?

Corn (maize) is a cereal grain domesticated in Mexico 10,000 years ago. It's used for animal feed (40%), ethanol (30%), food products (15%), and exports (15%).

Why ZC Matters

Corn is in everything—meat (via feed), gasoline (ethanol), soda (high-fructose corn syrup), and countless processed foods.

What Moves the Price?

Top 6 drivers affecting Corn prices:

Weather

Growing season weather (May-August) is critical. Drought devastates yields.

USDA Reports

Monthly supply/demand estimates move markets significantly.

Ethanol Demand

40% of U.S. corn becomes ethanol. Gas prices and RFS mandates matter.

Export Demand

China, Mexico, Japan are major buyers. Trade policies affect exports.

Planted Acreage

Farmers choose between corn and soybeans. Relative prices influence decisions.

Livestock Feed

Animal feed is 40% of demand. Hog and cattle herd sizes matter.

Market Structure

Spot vs Futures

CBOT corn futures are the global benchmark. Cash prices vary by location based on basis (local supply/demand).

Contango & Backwardation

Often in contango due to storage costs. Harvest pressure creates seasonal patterns.

Key Exchanges: CBOT (CME Group), Dalian Commodity Exchange

Contract Size: 5,000 bushels per contract

Seasonality

Strong seasonality tied to the crop cycle.

Peak Months: May, June, July

Low Months: September, October, November

Prices often rally in spring/summer on weather uncertainty. Harvest pressure (Sept-Nov) typically brings lows. Post-harvest demand can lift prices.

Macro Sensitivity

Corn is dollar-sensitive as a major export. Less tied to business cycles than industrial commodities. Inflation affects input costs.

USD Sensitivity: negative
Inflation Sensitivity: positive
Growth Sensitivity: neutral
Rates Sensitivity: neutral

Stock & ETF Exposure Map

Related Stocks

Related ETFs

Key Calendar & Reports

USDA WASDE Report (Monthly (around 12th))

Source: USDA. World Agricultural Supply and Demand Estimates

USDA Prospective Plantings (Annual (March 31))

Source: USDA. Farmer planting intentions survey

USDA Crop Progress (Weekly (Monday))

Source: USDA. Planting, emergence, and condition reports

EIA Ethanol Report (Weekly)

Source: EIA. Ethanol production and stocks

How to Trade Corn

ETFs like CORN offer exposure. Agribusiness stocks (ADM, BG) provide indirect access. Futures trade on CBOT.

Frequently Asked Questions

Why is corn in gasoline?

The Renewable Fuel Standard (RFS) mandates ethanol blending. Most U.S. gasoline is 10% ethanol (E10), made from corn.

What is a bushel?

A volume measure for grain. Corn bushel = 56 pounds. Prices are quoted per bushel.

Why does weather matter so much?

Corn needs adequate rain during pollination (July). A week of heat and drought can cut yields dramatically.

What is basis?

The difference between local cash prices and futures. Varies by location based on local supply, demand, and transport costs.

How do corn and soybean prices relate?

Farmers choose between them based on relative prices. High corn prices encourage more corn planting, reducing soybean acreage.

What is high-fructose corn syrup?

A sweetener made from corn starch. Used in sodas and processed foods. Controversial for health effects.

Who exports the most corn?

The U.S. exports about 55 million tonnes annually, followed by Brazil and Argentina.

What is the corn belt?

The primary U.S. growing region: Iowa, Illinois, Nebraska, Minnesota, Indiana. These states produce 70%+ of U.S. corn.

Glossary

Bushel: Standard unit of corn: 56 pounds or about 25 kg.
WASDE: World Agricultural Supply and Demand Estimates - the key USDA report.
Basis: Local cash price minus futures price. Reflects local supply/demand.
Yield: Bushels produced per acre. U.S. average is about 175 bushels/acre.
Pollination: Critical corn development stage (July) when water stress causes crop damage.
Ethanol: Alcohol fuel made from corn, blended with gasoline.
DDGs: Distillers Dried Grains, a byproduct of ethanol used for animal feed.
Carry: Stocks that carry over from one crop year to the next.
New Crop: The upcoming harvest, typically September-November for corn.
Old Crop: Corn from the previous harvest still in storage or being used.