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CME Group to launch new sorghum basis futures

Created at 24 Jul · 2:21 PM1 source↑ Market-relevant
IN SHORT

CME Group announced plans to launch Sorghum basis futures, set to begin trading on August 24, 2026, pending regulatory approval. The new contract aims to help market participants hedge against volatility in the sorghum-to-corn cash spread.

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Key Numbers

2.1 millionQ2 2026 agricultural products contracts traded
4.1 millionQ2 2026 corn futures and options open interest
695,000Q2 2026 corn futures and options contracts traded

Who's Involved

CME Group
World's leading derivatives marketplace planning new futures launch
John Ricci
Managing Director and Global Head of Agricultural Products, CME Group
CME Group to launch new sorghum basis futures

↳ Why This Matters

The introduction of these futures contracts provides a new tool for agricultural market participants to manage price risk associated with sorghum, a key commodity for feed and biofuels, potentially stabilizing its price relationship with corn.

Key facts

  • CME Group will launch new Sorghum basis futures.
  • Trading is scheduled to begin on August 24, 2026, subject to regulatory approval.
  • The futures contract is designed to hedge the price difference between sorghum and corn.
  • The contracts will be physically delivered from elevators in Kansas.
  • Sorghum is a versatile commodity used in animal feed and biofuels.

CME Group, a leading derivatives marketplace, has announced plans to introduce Sorghum basis futures, with trading anticipated to start on August 24, 2026, pending regulatory approval. This new contract is designed to address the increasing volatility in the sorghum-to-corn cash spread, which can be influenced by macroeconomic cycles, geopolitical events, and regional supply shifts.

Sorghum is a versatile grain utilized globally for animal feed, as an export commodity, and increasingly as feedstock for biofuels. The new basis contract will specifically track the price difference between sorghum and corn. John Ricci, Managing Director and Global Head of Agricultural Products at CME Group, stated that the futures contract will provide market participants with a precise instrument to hedge this basis risk.

The contracts will be physically delivered, with grain loaded out via truck or rail from a network of elevators located in Kansas, the largest sorghum-producing state in the U.S. The delivery mechanism will utilize the established Kansas City Hard Red Winter Wheat delivery network. In the second quarter of 2026, CME Group reported record quarterly volume of 2.1 million contracts for its Agricultural products, with corn futures and options reaching record open interest of 4.1 million contracts.

Frequently asked questions

Sorghum basis futures are derivative contracts that allow traders to hedge the price difference between sorghum and corn, two grains used in animal feed and ethanol production.

Trading is expected to start on August 24, 2026, pending regulatory approval.

The contracts will be physically delivered from a network of elevators in Kansas, the largest sorghum-producing state in the U.S.

The contract is being launched to provide market participants with an instrument to hedge the considerable volatility experienced in the sorghum-to-corn cash spread in recent years.

What Happens Next

01Trading of Sorghum basis futures is expected to commence on August 24, 2026.
02The launch is pending regulatory review.

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Cadence
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How It Developed

CME Group announced plans to launch Sorghum basis futures.
Trading is expected to commence on August 24, 2026, pending regulatory review.
The new contract will reflect the price difference between sorghum and corn.
Contracts will be physically delivered from elevators in Kansas.
CME Group achieved record quarterly volume for Agricultural products in Q2 2026.
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Sources

T1
CME Group to offer new sorghum basis futuresWorld Grain
T2
Sorghum - CME Groupcmegroup.com
T2
CME Group Launches Sorghum Basis Futures to Meet Global Feed, Export ...cmegroup.com

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