CME Group Launches Sorghum-Corn Spread Futures Contract
The CME Group has listed a new futures contract for the sorghum-corn spread, providing a tool for growers to manage their exposure to price risks.
Historically, sorghum and corn prices have moved together but not in lockstep. The spread between them can be significant, with prices ranging from a $1.72 discount to a $1.47 premium since 1989. In June 2026, sorghum averaged 17 cents above corn, yet USDA's estimates imply a 60-cent discount for the year.
The new contract will allow growers to manage the spread risk, which is distinct from the broad grain-price risk shared with corn. The contract prices the sorghum-corn differential and settles through physical delivery of sorghum to exchange-approved elevators in Kansas City, Wichita, Hutchinson, and Salina at a 6-12 cent discount per bushel.
Liquidity will be crucial for the success of the new contract, with producers, feeders, ethanol plants, and exporters all having a stake. If participation generates sufficient trading volume, open interest, and two-sided liquidity, sorghum gains a public price for a risk that has never had one.