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The Chicago Corn Futures contract gives investors exposure to the international commodities market. A futures contract is a legally binding agreement that gives the investor the right to buy or sell an underlying commodity at a fixed price on a future date.
Benefits
- Easy access to the international market with a contract traded in local currency (ZAR)
- Effectively manage price risk with a view on the international market
- Effectively evaluate both the current and future world supply and demand for corn
- Identify short term and long term price and volatility patterns for corn
- Hedge or gain exposure based on expectations of directional price, spread movement or volatility in corn
- Realise arbitrage and spread opportunities between USA corn and South African white/yellow maize
Who should use this product?
- Hedgers seeking to protect themselves against adverse price movements with a view that the international market is a better hedge
- Speculators hoping to make a profit on short-term movements in the futures contract price
- Speculators hoping to benefit for the spread opportunities between the local vs international market
How to use this product?
- Register as a client with an authorised member firm
- Deposit the required initial margin (good faith deposit) to be able to take out a sell or buy futures position
- Sell a futures contract to protect yourself against downside movement. Buy a futures contract to protect yourself against upside movement.
- Trade the spread between local and international prices. "Split" functionality allows simultaneous buying and selling of products, reducing execution risk
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Learn more about Chicago Corn Futures & Options |
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