Chicago Board Of Trade Corn Price History
Chicago Board of Trade (CBOT) is the oldest and one of the largest futures exchanges in the world. It was established in 1848 and it has been a hub of agricultural commodity trading since its inception. The exchange is known for its futures and options contracts on commodities such as corn, soybeans, and wheat.
The Importance of Corn
Corn is one of the most widely produced and traded agricultural commodities in the world. It has various uses such as food, animal feed, and fuel. The United States is the largest producer and exporter of corn in the world, and the majority of its corn production is used for livestock feed and for producing ethanol. The price of corn is affected by various factors such as weather conditions, government policies, and global demand and supply.
The History of Corn Trading on CBOT
The first corn futures contracts were introduced on CBOT in 1851, just three years after the exchange was established. Initially, the contracts were for delivery of corn at Chicago and were settled in cash. In the early 1860s, the contracts started to include delivery at other locations as well. By the early 20th century, the corn futures contracts had become one of the most actively traded contracts on CBOT.
Over the years, the corn futures contracts on CBOT have changed to meet the demands of the market. In the 1970s, the contracts were modified to allow for electronic trading. In the 1990s, the contracts were changed to allow for the delivery of corn in different grades and qualities. Today, the corn futures contract on CBOT is for 5,000 bushels of No. 2 yellow corn, and the price is quoted in cents per bushel.
The Corn Price History on CBOT
The price of corn on CBOT has varied widely over the years, depending on various factors such as weather conditions, crop yields, and global demand and supply. The following is a brief overview of the corn price history on CBOT:
The 1970s and 80s
In the 1970s and early 80s, the price of corn on CBOT was relatively stable, hovering around $2-$3 per bushel. However, in the mid-80s, the price started to increase steadily, driven by strong global demand and the depreciation of the US dollar. By 1988, the price of corn had reached a record high of $4.45 per bushel.
The 1990s
In the 1990s, the price of corn on CBOT fluctuated widely, driven by various factors such as weather conditions and government policies. The price started the decade at around $2.50 per bushel and reached a low of around $1.50 per bushel in 1995. However, by the end of the decade, the price had recovered and was trading at around $2.50-$3 per bushel.
The 2000s
In the 2000s, the price of corn on CBOT experienced a significant increase, driven by various factors such as the growth of biofuels and increased demand from emerging markets. The price started the decade at around $2 per bushel and reached a record high of $7.65 per bushel in 2012. The price then started to decline and was trading at around $3.50 per bushel at the end of the decade.
The 2010s
In the 2010s, the price of corn on CBOT continued to fluctuate widely, driven by various factors such as weather conditions and government policies. The price started the decade at around $4 per bushel and reached a low of around $3 per bushel in 2014. However, by the end of the decade, the price had recovered and was trading at around $4 per bushel.
The Future of Corn Trading on CBOT
The future of corn trading on CBOT looks bright, with the demand for corn expected to continue to grow in the coming years. The exchange is likely to continue to modify its corn futures contracts to meet the demands of the market, and the price of corn is likely to continue to be driven by various factors such as weather conditions, government policies, and global demand and supply.
In conclusion, the history of corn trading on CBOT is a testament to the importance of corn as an agricultural commodity and the role of futures exchanges in facilitating the trading of agricultural commodities. The price of corn on CBOT has varied widely over the years, and is likely to continue to be driven by various factors in the future. If you are interested in trading corn futures contracts on CBOT, it is important to stay informed about these factors and to develop a solid trading strategy.