CME Group Launches Sorghum Futures Contracts in Kansas

CME Group, the world's leading derivatives marketplace, has launched sorghum futures. The new contract reflects the price difference between sorghum and corn, two types of grain used in animal feed as well as ethanol feedstock.

Sorghum is a versatile commodity uniquely positioned to meet global demand from the domestic feed industry, the international export market, and biofuels. A deep discount for sorghum over corn usually signals international demand driving values higher.

The contracts will be physically delivered, with grain being loaded out by truck or rail from a network of elevators in Kansas, the nation's largest sorghum-producing state.