Isolate and manage pure basis volatility risk
Priced directly as a differential to Corn futures, the new 5,000-bushel Sorghum basis contract allows market participants to isolate and manage this specific structural risk, bypassing flat-price liquidity hurdles and avoiding exposure to the directional price movements of the broader grain complex.
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Features and benefits
Physical delivery in sorghum country
Settled via shipping certificates utilizing the trusted, existing KC Hard Red Winter Wheat delivery footprint.
Isolate high-volatility basis risk
Trade the volatile sorghum-to-corn cash spread independently. Protect gross processing margins, hedge elevator inventory values or capitalize on shifting feed-grain yield spreads.
Deep liquidity integration
Built to leverage existing liquidity pools. Implied inter-commodity spreads are available between Sorghum and Corn futures, appearing as sorghum's implied flat price.
Explore this product in depth
About Sorghum
Sorghum sits at the intersection of key global demand channels, including domestic feed, regional biofuels and international export markets. Although sorghum correlates with corn over long horizons, localized supply dynamics and geopolitical factors frequently cause the cash spread between the two grains to fluctuate significantly.
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