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How to Invest in Corn for Beginners in 2024

Learn how to make your first Corn investment and compare the best places for Corn trading or long term Corn investing.

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Updated: Aug 30, 2024

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5 min read

Investing in Corn can be a great way to diversify your investment portfolio and protect your wealth from inflation. There are several different ways to trade or invest in Corn, from trading at current prices to investing in stocks or ETFs that track the Corn price.

If you’re new to Corn investing like this, don’t worry. It’s more straightforward than it might seem. Just like with other investments, the key is to understand the basics of each market, understand your own goals, and take things step by step.

This guide explains how Corn markets work and outlines the different ways you can invest in Corn. Our step-by-step walkthrough takes you through the process so that by the end, you’ll feel confident buying and selling Corn as part of your investment strategy.

Can I invest in Corn?

Yes, investing in Corn is straightforward and available to anyone using an online trading platform. Investing in Corn and trading Corn represent different approaches with varying time horizons.

Corn investing involves a long-term perspective with the main aim of growing your wealth and diversification. That is, adding different types of investment to your portfolio to spread your risk around[1][1]. Corn trading, on the other hand, focuses on taking advantage of short-term price movements for quick gains.

You can invest or trade Corn through many different avenues, including physical ownership, Corn exchange traded funds, or via derivatives trading. To decide on the best approach, you need to consider your goals and time horizon before aligning your strategy with your specific objectives.

Where can I trade Corn online?

To invest in Corn you need to register with an top online commodities broker. Our experts regularly rate and review these platforms. Here are the top Corn trading platforms where you live, ranked according to a range of factors including cost, security, and the range of Corn markets.

We found 5 commodity trading platforms for users based in

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What is Corn investing?

There are different ways to invest in Corn, from purchasing the physical commodities themselves, to buying shares in companies that produce, transport, or use Corn in some way, to trading Corn futures and options contracts.

What all these have in common is that when you invest in Corn, you are essentially betting on the future price movement of these goods.

Commodity investing can offer several benefits, including diversification of your investment portfolio and a potential hedge against inflation. Because commodity prices can move independently of stock and bond markets, they can help reduce overall investment risk.

Although Corn prices can fluctuate in the short term, investors generally focus on the potential for steady and long term growth. This long term focus is what differentiates Corn investors from traders. When trading Corn, you are more interested in short term price fluctuations than long term performance.

What is Corn trading?

In Corn trading, you trade contracts that represent Corn, such as futures contracts, options, or exchange-traded funds (ETFs). This is a more short-term approach, and you don’t typically take physical possession of anything, whether that might be goods or share certificates.

A futures contract, for example, is an agreement to buy or sell a specific quantity of Corn at a predetermined price on a set date in the future[2][2], and it’s a very popular way to trade Corn.

Corn trading is a way to profit from Corn price movements or it can be used by businesses to hedge against price fluctuations in the materials they use, trade, or produce[3][3]. For example, an airline might buy oil futures to lock in fuel prices and protect against potential increases.

This type of trading can offer opportunities for profit, but it also comes with risks, such as price volatility and market unpredictability. Because Corn prices can be influenced by factors like weather, geopolitical events, and economic trends, they can be more volatile than other asset classes.

Ways to invest in Corn

There are several options available when it comes to investing in Corn and the one you should pick depends on your budget, experience, and the timeframe for seeing returns. Here’s a look at the various ways you can invest in Corn.

Invest in Corn stock. Perhaps the simplest way of gaining exposure to Corn is by investing in public companies that are involved in the Corn industry. The share price of these companies correlate with the price of Corn (to some extent). You should mainly be looking at companies involved in Corn manufacturing, producing, and selling.
Invest in Corn ETFs. Exchange traded funds (ETFs) are funds that trade on a stock exchange like any ordinary stock; however, they contain a selection of different stocks, providing a diversified blend for investors. You can also invest in Corn commodity ETFs, which are funds that have their value pegged to the physical Corn price.
Invest in Corn funds. Mutual funds are created when capital from many different investors is pooled together and a fund manager takes control, using their expertise to decide what Corn assets to invest in and when to sell them. This can be a great way of investing in Corn without the strain on your own knowledge and experience.
Trade Corn futures. Futures contracts are the most common way to speculate on short term Corn price changes. Corn futures contracts are standardized and trade on designated commodity exchanges, such as the Chicago Board of Trade or the Chicago Mercentile Exchange, which manage derivatives trading. Trading Corn futures contracts require a detailed understanding of what impacts short term prices, and are most suited to someone with experience in the Corn market[4][4].
Trade Corn CFDs. Contracts for Difference (CFDs) are a popular way to speculate on Corn price movements outside the US, as they allow you to start trading Corn without having to own the physical asset itself. This makes them ideal for commodity trading, where it’s not practical to own and store large quantities of Corn. With CFDs, you can profit from both rising and falling prices. CFDs also offer leverage, which can amplify your exposure to Corn markets.
Trade Corn options. Options let you buy or sell Corn contracts at a predetermined price on or before a specific future date. Like futures, Corn options trading requires some expertise but allows traders to capitalise on price changes and manage risk, which makes it popular with people familiar with the Corn market.

How to invest in Corn – a step-by-step guide

Investing in Corn is a simple process. Before you begin, you need to register with an online broker to access the Corn market. Follow the steps below to learn how to invest in Corn.

Step 1. Define your investment timeline

You should clarify your investment objectives as the first step. Are you looking for long term capital growth, portfolio diversification, or short term speculation?

From there, you can start to craft your Corn investment strategy. Long term growth or diversification might mean you’re better off investing in Corn stocks or ETFs, whereas a short term approach means trading Corn using futures or options.

That decision helps you decide which Corn broker is best for you.

Step 2. Open a Corn trading account with Plus500

Choose an online broker that offers the Corn markets that you want to invest in.

We recommend Plus500 as the best Corn trading platform.

It has one of the widest selections of derivatives available, so you’ll find multiple ways to invest in Corn.

Step 3. Analyse the Corn market

Before investing, take the time to analyse the Corn market thoroughly. You can look at factors such as supply and demand dynamics, geopolitical events, and technical analysis. You can use your analysis to help develop an investment or trading strategy.

Step 4. Make your investment

It’s time to place your trade when you’ve completed your research and defined your strategy. Search for the market you want to invest in and visit its trading page while logging into your brokerage account.

Check its price and enter your trade details. You can click buy if you’re investing in Corn stocks or funds. If you’re trading Corn using futures or options, consider including a stop loss and take profit level to help protect your position.

Step 5. Monitor your investment portfolio

Regularly review your portfolio and its performance. You may want to consider making changes if necessary and be prepared to adapt your strategy as the Corn market conditions adjust.

Invest in Corn

What to consider before making a Corn investment

When investing in Corn, it’s important to approach with a well thought out strategy. Considering a range of factors before investing can save you time and money in the long run. Use the helpful tips below to plan your Corn trading or investing strategy.

What are your investment goals?

Before you begin, you should clearly define your investment objectives. Are you seeking quick gains, long term wealth appreciation, or steady income? Knowing your goals before you start can help guide you in your strategy and also which Corn derivative to use.

Does Corn suit your risk tolerance?

Commodities like Corn often experience large price fluctuations due to supply and demand dynamics, global events, and economic changes. Make sure you’re comfortable with the potential for market fluctuations. If you’re a short term trader, then ensure you’ve checked the historical price chart for Corn to determine if it’s volatile enough for day trading.

Will investing in Corn add diversification to your portfolio?

For long term investors, diversification is one of the core principles to follow. When you invest in Corn and add it to your portfolio, make sure it complements your existing investments. For example, if you already own several Corn stocks, you may be better off choosing another commodity.

Take the time to study the Corn market dynamics.

Like many commodities, Corn has unique characteristics and supply and demand fundamentals. To trade Corn, studying the broader Corn market, especially historical price trends is essential. Before you invest in Corn, you will need to understand the factors that influence its value.

Choose the right investment vehicle.

We’ve already discussed the options available to you to buy Corn. Each has its own advantages, so you should select the one most suited to your investment goals. For example, trading Corn is best done via futures, options, CFDs, and spot. If you invest in Corn, stocks or ETFs are the way to go.

How does the corn market work?

The corn market functions similarly to other commodity markets. However, not all commodities move in the same way and corn has a number of unique features that make it independent. Below are some of the key factors at play.

Ethanol prices. Corn plays a big part in the production of ethanol and demand for it will often impact the price of corn. If worldwide requirements for ethanol were to drop, for example, then there would be a surplus of corn. Its supply would outweigh its demand and its price would lose value.
Weather. Changes in weather are often correlated with corn and other grains crop outputs. Extreme heat and too much rain can both reduce crop yields, which in turn will likely impact the price of corn. If farmers are unable to produce the required amounts of corn, supply would be short and prices would rise.
The Chinese market. Recent years have seen China increase their bio-fuel consumption. Growing wealth levels in the country has meant more corn is needed to feed a larger number of livestock used for meat. Both of these factors are geared towards greater demand and rising corn prices.
US Dollar. The United States is the largest producer of corn in the world and the value of its currency can affect the price of corn. A fall in value of the dollar would mean foreign buyers would pay more for U.S. corn, while it would become cheaper if there was a rise in the dollar’s value.
Supply and demand. Like all markets, the biggest driver of corn prices is the principle of supply and demand. Many factors impact the supply and demand of corn, including production levels, consumption, and even geopolitical events.
Exchanges. Corn is traded on several exchanges where buyers and sellers transact. The price of corn may be slightly different between exchanges. The main corn exchange is the Chicago Board of Trade (CBOT).
Hedging. The corn market is often used for hedging purposes. Producers of corn may use futures contracts to protect against future price fluctuations, resulting in stability for their business practices.
Speculators and investors. Retail investors and traders can impact corn prices. This is especially the case for short-term movements, where speculators provide liquidity to the market and impact near-term price dynamics.

Is corn a good investment?

This really depends on the key supply-demand drivers, the status of the global economy and your own needs and desires as an investor. corn has many benefits that make it a good choice for investors. Its main advantage is its role in diversification. It also has a low correlation with traditional assets such as stocks and bonds, which means if you include corn in your portfolio, you’ll spread risk and add stability.

You can also use corn as a hedge against inflation. When inflation rises, the value of corn historically appreciates. The real world use of corn also creates constant demand. However, it’s important to remember that corn investing is not totally risk-free.

A wide range of factors influences its price, so you’ll need to have a solid understanding of market dynamics before investing.

What are the risks of trading corn?

Trading corn has the potential for significant rewards but also carries risks you need to be aware of. These risks are the same across the overall commodity market, but for corn, several more specific ones apply. Below, we’ve explained the main risks of corn investing.

Volatility. The corn market is known for its price volatility. Compared to other markets, the price of corn can widely fluctuate daily. It can be costly if you’re unprepared for the volatile nature of the corn market.
Macroeconomic factors. corn prices are affected by several macroeconomic factors, such as industrial demand, inflation, interest rates, dollar strength, and geopolitics. Before trading corn, you should have a good understanding of these.
Corn has no yield. Unlike with other investments such as bonds or dividend stocks, corn does not provide any income yield. So, any returns you make rely entirely on its value increasing over time. You may encounter long periods of flat prices that can reduce your profits.
Low liquidity. In general, commodity markets have less liquidity than more mainstream assets like stocks or currencies. Low liquidity can be problematic, especially if you’re a trader, as you may have wide bid-ask spreads, which could impact the ability to enter or exit positions.
Regulatory risks. Government policies can play a role in the way corn prices move. Export restrictions or changes in tax regulations could introduce unforeseen risks.

Bottom line

Corn investing offers the opportunity for diversification and portfolio growth. Corn has potential benefits as a store of value and hedge against inflation, but it’s essential to weigh the risks such as price volatility and market uncertainty before investing.

One of the key benefits of the corn industry is the various ways you can get involved. There is an investment vehicle for everyone, from corn stocks and ETFs for long term investors to corn futures and CFDs for short term traders. A trusted and regulated trading platform is a must if you want to navigate the corn industry successfully.

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Sources & references

Our editors fact-check all content to ensure compliance with our strict editorial policy. The information in this article is supported by the following reliable sources.

https://www.ers.usda.gov/webdocs/publications/47264/51088_tb1878b.pdf?v=0

Risk disclaimer

Prash Raval

Financial Writer

Prash is a financial writer for Invezz covering FX, the stock market and investing. For over a decade he has traded spot FX full time while... read more.