Spot Market Price For Corn

[jlamb]

I am doing some research and I need to understand what the spot market price is for corn in bushels? I see 1994 on the November 2000 contract from CBOT but unfortunately that doesn't mean a lot. Any assistance is appreciated. If you can indicate how you calculated this amount that would be appreciated. Respectfully, Jory Lamb

[bbrindle]

Usually a 'spot market' refers to a cash market. In other words the market that actually trades the physical commodity, not the futures market. However, the terms do get mixed up sometimes and occasionally people will refer to the spot market with regards to the futures market, but the correct term for the futures market is the 'nearby'. You'll find a handy glossary of marketing terms at http://www.agric.gov.ab.ca/economic/marketing_manual/glossary/glossary.html I'll assume it is the cash market you need and that you are looking for the spot market cash price for corn. So the spot cash market would be the price, right now, for corn. However, you need to decide a what location. For example, for barley, Lethbridge is often used as the cash market benchmark. Corn in Canada is often quoted for Chatham Ontario. I can't quickly find a site for the Chatham prices, but let me know if this is what you need and I will find it. For the US you can find a cash price benchmark at the CBOT site (under cash prices, agricultural). Today it shows two cash bids for Chicago #2 yellow corn of $1.93 1/4 at the terminal and $2.00 1/4 at the processor. There are also other key cash market for corn. If you did indeed want a nearby futures prices then you would look at the November futures for corn. You mentioned 1994. I can certainly understand the confusion around this number. This is how Chicago futures prices are always done. First of all put the decimal where it needs to go: 1.99 (i.e. divide the first 3 digits by 100). Then the last digit is a fraction of 8, or 4/8, which is 1/2. So 1994 = $1.99 1/2 cents/bu (And some people think the metric system is confusing !!)

[jlamb]

Brenda: The information you provided - answered my questions. Thanks for the lesson. Jory Lamb