CME Group Unveils Sorghum Basis Futures Launch for August 24

CME Group announced plans to launch sorghum basis futures on August 24, 2026, pending regulatory approval. The new contract will measure the price differential between sorghum and corn, both commonly used in livestock feed and ethanol production.

According to John Ricci, managing director and global head of agricultural products at CME Group, while sorghum prices generally follow corn over long macroeconomic periods, geopolitical events and regional supply changes can break that pattern. He noted that the cash spread between sorghum and corn has seen notable volatility in recent years.

The new futures contract will offer market participants an exact tool to manage basis risk, CME Group said. Physical delivery of the contracts will occur, with grain shipped by truck or rail from a group of elevators in Kansas, leveraging the existing Kansas City Hard Red Winter Wheat delivery infrastructure.