Agricultural futures are where organized futures trading began. Farmers needed a way to lock in prices before harvest, and buyers needed a way to lock in costs. Today corn, soybean, wheat and livestock futures still serve that purpose, and they also attract traders who study weather, crop reports and global demand.
What agricultural futures are
An agricultural futures contract is a standardized agreement for a set quantity and grade of a crop or livestock product at a future date. CBOT corn, for example, covers 5,000 bushels. Grain contracts are physically deliverable, so traders who don't want delivery must close or roll positions before the delivery period. Lean hog futures are cash-settled; live cattle are physically delivered. Check CME Group for each contract's settlement method.
Who uses them
The hedgers are easy to picture: a farmer selling futures to protect the value of a crop in the field, an ethanol plant buying corn futures to lock in input costs, a meatpacker managing the cost of cattle. Speculators take the other side of many of those trades, hoping to profit from price changes and carrying the risk hedgers want to transfer.
The major contracts at a glance
| Contract | Symbol | Exchange | Contract unit | Minimum tick | Tick value |
|---|---|---|---|---|---|
| Corn | ZC | CBOT | 5,000 bushels | ¼ cent per bushel | $12.50 |
| Soybeans | ZS | CBOT | 5,000 bushels | ¼ cent per bushel | $12.50 |
| Wheat (Chicago SRW) | ZW | CBOT | 5,000 bushels | ¼ cent per bushel | $12.50 |
| Live Cattle | LE | CME | 40,000 pounds | $0.00025 per pound | $10.00 |
| Lean Hogs | HE | CME | 40,000 pounds | $0.00025 per pound | $10.00 |
Tick value = minimum tick × contract unit.
Specs change
Contract terms are set by the exchange and can be amended. Agricultural contracts also have shorter trading sessions and daily price limits. Confirm current specifications on CME Group before trading.
What moves agricultural prices
- The USDA WASDE report. The World Agricultural Supply and Demand Estimates is released monthly at noon Eastern and forecasts U.S. and world supply and use for grains, oilseeds, cotton, sugar, meat, poultry, eggs and milk. Surprises against expectations can move grain futures quickly.
- Other USDA reports, including planting intentions, acreage, crop progress and grain stocks reports.
- Weather during planting and key growing months in the U.S. and in other major producing regions.
- Export demand and trade policy, since the U.S. is a major grain exporter.
- Feed and energy links. Corn is a major livestock feed and an ethanol input, so it connects grain, livestock and energy markets.
Seasonality
Crops follow a calendar of planting, growing and harvest, and price behavior often reflects where the market is in that cycle and how uncertain the next harvest looks. Livestock markets have their own seasonal supply patterns. Many traders study spreads between contract months or between related products; see spread trading.
Seasonal tendencies fail often. A drought, a surprise report or a trade dispute can overwhelm any "typical" pattern.
Trading hours
Unlike stock index or energy futures, grain and livestock contracts do not trade nearly around the clock. CBOT grains have an overnight session and a daytime session with a break between them, and livestock trades a shorter daytime session. Confirm current hours on CME Group's trading-hours page.
Risks specific to agricultural futures
- Report-day volatility. Major USDA releases can move prices to their daily limits.
- Daily price limits. When a market locks at its limit, you may not be able to exit until trading resumes, and losses can grow.
- Delivery obligations. Physically delivered contracts require closing or rolling before delivery. See expiration and rollover.
- Lower liquidity in some months. Contracts further out in time may trade thinly.
A worked example: reading grain quotes
Grain futures are quoted in cents per bushel. If corn moves from 450 cents ($4.50) to 460 cents ($4.60), that is a 10-cent move, or 40 quarter-cent ticks. At $12.50 per tick, the change is $500 per contract.
Soybeans trade at a higher price per bushel than corn and often move more cents per day. A 20-cent move in soybeans is 80 ticks, or $1,000 per contract.
Livestock is quoted in cents per pound. A one-cent move per pound on a 40,000-pound live cattle or lean hog contract equals $400 (40 ticks of $0.00025, each worth $10).
| Contract | Example move | Value per contract |
|---|---|---|
| ZC | 10 cents per bushel | $500 |
| ZS | 20 cents per bushel | $1,000 |
| ZW | 10 cents per bushel | $500 |
| LE or HE | 1 cent per pound | $400 |
Common beginner mistakes
- Trading through a major USDA report by accident. Know the release dates before you study or simulate a position.
- Overlooking daily limits. A market that locks limit-down may not let you exit when you want to.
- Assuming last year's seasonal pattern will repeat. Weather and demand change every year.
- Forgetting session times. Grains and livestock have shorter hours than many financial futures, so orders and stops behave differently around the session break.
How beginners can study this market
- Read a WASDE summary on release day and compare the market's reaction with the numbers.
- Learn how the big players are positioned using the CFTC's weekly Commitments of Traders report.
- Practice tick math. A 10-cent move in corn equals 40 ticks, or $500 per contract.
- Paper trade before risking money, and plan every simulated trade with our trading plan builder.
FuturesSignal.com is an education resource. Nothing on this page is a recommendation to buy or sell any contract.
Before you trade
Futures are leveraged. A small price move can produce a large gain or loss, and losses can exceed the money in your account. This article is general education, not a recommendation to buy or sell any contract.
- Practice in a simulated (paper) account before using real money.
- Decide your maximum loss per trade before you enter, and size positions to it.
- Confirm current contract specifications and margin requirements with the exchange and your broker.
Common questions
How much is one tick in corn futures?
CBOT corn covers 5,000 bushels and moves in quarter-cent increments, so one tick is worth $12.50 per contract. Soybeans and wheat use the same quarter-cent, $12.50 tick.
What is the WASDE report?
The World Agricultural Supply and Demand Estimates report is published monthly by the USDA's World Agricultural Outlook Board. It forecasts supply and use for major crops and livestock products, and grain futures often react to it.
Are grain prices seasonal?
Grain markets are strongly influenced by the planting, growing and harvest calendar, and weather during key growing months can move prices sharply. Seasonal tendencies are not reliable enough to trade on by themselves.
Sources
- Basics of Futures Trading — U.S. Commodity Futures Trading Commission. www.cftc.gov/LearnAndProtect/AdvisoriesAndArticles/FuturesMarketBasics/index.htm
- Corn Futures, Rulebook Chapter 10 — CME Group (CBOT). www.cmegroup.com/rulebook/CBOT/II/10/10.pdf
- Soybean Futures, Rulebook Chapter 11 — CME Group (CBOT). www.cmegroup.com/rulebook/CBOT/II/11/11.pdf
- Live Cattle Futures, Rulebook Chapter 101 — CME Group. www.cmegroup.com/rulebook/CME/II/100/101/101.pdf
- WASDE Report — U.S. Department of Agriculture. www.usda.gov/about-usda/general-information/staff-offices/office-chief-economist/commodity-markets/wasde-report
Last reviewed October 17, 2026. Educational content only; not investment advice. Contract specifications and margins change, so confirm current figures with the exchange and your broker. See our risk disclosure.
