CME Group to launch new sorghum futures

CME Group plans to introduce a new sorghum basis futures contract, with trading expected to begin on August 24, subject to regulatory approval. The new contract is designed to provide market participants with an additional tool to manage price risk as sorghum’s role in global agricultural markets continues to expand.

According to CME Group, sorghum has become an increasingly important crop due to strong demand from the livestock feed sector, export markets, and the growing biofuels industry. The new contract will track the price difference between sorghum and corn, two grains widely used for both animal feed and ethanol production.

John Ricci, Managing Director and Global Head of Agricultural Products at CME Group, said that while sorghum prices generally move in line with corn over the long term, geopolitical events and regional shifts in supply and demand can cause significant swings in the price spread. The new futures contract will give market participants a more precise instrument to hedge that basis risk.

The contracts will be physically settled through truck or rail deliveries from a network of grain elevators in Kansas, the largest sorghum-producing state in the United States. Deliveries will use the existing Kansas City Hard Red Winter Wheat delivery network.

The launch comes as trading activity in agricultural derivatives continues to grow. During the second quarter of 2026, CME Group reported a record quarterly volume of 2.1 mln contracts for agricultural products, while open interest in corn futures and options reached an all-time high of 4.1 mln contracts. The exchange expects the new sorghum futures to strengthen risk management opportunities for producers, traders and processors.

Tags: prices, sorghum