- What are Sorghum futures?
- What is the product code?
- What is the regulatory jurisdiction of this futures contract?
- How are Sorghum futures settled?
- Will there be Corn futures inter-commodity spreads?
- What is the daily settlement procedure for Sorghum futures?
- When is the last trading day of the contract?
- Are there price limits?
- How can Sorghum futures be traded?
- The futures contracts are available to trade as a block. How does that work?
- What are the requirements for block trades?
- Is crossing permitted?
- What are the hours for trade entry on CME ClearPort and on CME Globex?
- What are the position limits?
- What is the listing schedule?
- I am a bona-fide hedger and I need to exceed position limits. Can I apply for a hedge exemption?
- I have more questions. Who can I contact?
1. What are Sorghum futures?
CME Group is launching physically delivered Sorghum futures, traded as a differential to Corn futures. Sorghum futures will be available for trading on the CME Globex electronic trading platform and for submission for clearing via CME ClearPort.
The Sorghum futures contract size is 5,000 bushels and is quoted in U.S. cents per bushel. The contract's tick size is $0.0025 per bushel ($12.50 per contract).
The first trading day will be August 24, 2026. The listed months available at launch will include December 2026, March 2027, May 2027, July 2027, September 2027 and December 2027.
2. What is the product code?
The Sorghum futures product code is MILO.
3. What is the regulatory jurisdiction of this futures contract?
The contract is listed in the U.S. by the CBOT DCM and cleared in the U.S. by CME Clearing. The regulator is the CFTC.
4. How are the Sorghum futures settled?
The Sorghum futures contract is physically delivered using shipping certificates.
Delivery of sorghum (U.S. No. 2 at par and U.S. No. 1 at a 1.5 cent per bushel premium) may be made at any facility regular for delivery on the KC HRW Wheat futures contract. The delivery invoice price will be Sorghum futures final settlement plus Corn futures daily settlement on the last day of trading for Sorghum futures.
5. Will there be Corn futures inter-commodity spreads?
Yes, implied inter-commodity spreads are available when trading between Sorghum futures and Corn futures. Because Sorghum futures trade at a differential or basis to Corn futures, these inter-commodity spreads will appear as sorghum’s implied flat price. Trading one inter-commodity spread will result in a position in both Corn futures and Sorghum futures in the same direction. For example, buying one Corn-Sorghum inter-commodity spread will result in a long Corn futures position and a long Sorghum futures position.
6. What is the daily settlement procedure for Sorghum futures?
Daily settlement takes place on each contract business day at 13:15 Central Time (CT). Daily settlement is based on CME Globex trading activity between 13:14 and 13:15 CT in the Sorghum futures contract.
7. When is the last trading day of the contracts?
Sorghum futures trading terminates on the fourth to last business day preceding the contract month, coinciding with the first holding day for Corn futures.
Participants with open positions after trading terminates are able to liquidate their positions by means of a bona fide Exchange of Futures for Related Position by the end of the second business day preceding the contract month, also known as first position day for Corn futures. All remaining open positions will then be matched for delivery.
8. Are there price limits?
There will be no price limits in Sorghum futures, but circuit breakers will be in place.
9. How can Sorghum futures contracts be traded?
The contract will be available for trading on the CME Globex electronic trading platform and for submission for clearing via CME ClearPort.
10. The futures contract is available to trade as a block. How does that work?
Subject to certain requirements, such as eligibility and minimum size, the futures contract can be privately negotiated via brokers as a block trade and submitted into CME ClearPort for clearing.
11. What are the requirements for block trades?
There are minimum quantity and reporting time requirements. The minimum block size is ten (10) lots and trades need to be reported within 15 minutes of execution.
Firms need to be classified as an eligible contract participant (ECP) to engage in block trades. The definition of ECP can be found in Section 1a(18) of the Commodity Exchange Act.
12. Is crossing permitted?
Yes. Committed cross (C-Cross) and Globex cross (G-Cross) are permitted futures crossing protocols for participants who engage in pre-execution communications pursuant to Rule 539. Pre-execution communications allow for size, price and direction to be discussed prior to the entry of orders into CME Globex.
13. What are the hours for trade entry on CME ClearPort and on CME Globex?
Trades may be entered on CME Globex from Monday – Friday: 8:30 a.m. – 1:20 p.m. CT.
Trades may be entered on CME ClearPort Sunday 5:00 p.m. to Friday 5:45 p.m. CT with no reporting available Monday to Thursday from 5:45 p.m. CT to 6:00 p.m. CT.
14. What are the position limits?
Sorghum futures will be subject to spot and single and all-month limits.
The applicable spot limit is 1,000 in net futures equivalents and comes into effect close of trading two business days prior to the first trading day of the delivery month.
The applicable single and all-month limit is 1,800 in net futures equivalents.
15. What is the listing schedule?
Sorghum futures will always be listed out for two December months and all prior March, May, July and September months.
16. I am a bona-fide hedger and I need to exceed position limits. Can I apply for a hedge exemption?
Exemptions from position limits for bona fide hedging will be available in accordance with CBOT Rule 559.
17. I have more questions. Who can I contact?
Contact us with questions at agriculture@cmegroup.com.
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
