Unexpected USDA report triggers record CME corn futures trading
CME Group corn futures set a new all-time daily trading volume record on October 9, with 1.206 mln contracts changing hands. The previous record was 1.129 mln contracts, set on March 29, 2019.
The sharp rise in trading activity followed the release of a surprise USDA report. The market had expected lower corn yields after challenging summer weather, but the agency published higher-than-expected estimates for yields, production and ending stocks.
Market participants quickly adjusted positions and hedged price risks, driving trading volumes to a record high. CME Group said the sudden shift in expectations for the corn balance significantly increased demand for futures instruments.
Strong activity has not been limited to individual sessions. In the third quarter, average daily volume in corn futures rose 35% year on year to 502 thsd contracts. Corn options average daily volume increased by 31% to nearly 180 thsd contracts.
Overall, CME Group’s agricultural derivatives average daily volume rose 18% in the third quarter to more than 2 mln contracts. In September, the increase reached 29% year on year, reflecting greater volatility and stronger demand for risk-management tools across agricultural markets.
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