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What are Agricultural futures?

Agricultural futures are standardized contracts for the purchase and sale of agricultural commodities for future delivery at predetermined prices.

Agricultural futures contracts were the first futures traded in the United States, dating back to 1848 when farmers and merchants came to Chicago to set prices on grains. Today, the agricultural futures market has evolved into a global, electronically accessible marketplace used by individuals, farmers, commercial firms, corporations, and government institutions worldwide.

These contracts serve two primary functions:

  1. Price Discovery - Establishing fair market prices through the forces of supply and demand
  2. Risk Management - Allowing market participants to hedge against adverse price movements

Major Agricultural Products

Grains and Oilseeds

The CME Group grain and oilseed complex includes futures and options on:

  • Oats
  • Rice
  • Corn
  • Wheat 
  • Soybeans and soybean byproducts (Soybean oil and soybean meal)

Each grain and oilseed futures product is based on a contract size of 5,000 bushels, except for Soybean Oil (60,000 pounds), Soybean Meal (100 tons), and Rough Rice (2,000 hundredweight).

Livestock

The livestock complex includes futures and options on:

  • Live Cattle - Ready for processing at 1,100-1,400 pounds
  • Feeder Cattle - Weaned calves weighing 600-800 pounds
  • Lean Hogs - Market-ready hogs at about 275 pounds

Many popular agricultural products are available to trade in a standard, mini or micro contract size.