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The cost of buying a corn futures contract on the Chicago Board of Trade is going up starting today, CBOT officials announced this week . For a 5,000 bushel contract, hedgers (mainly farmers) will be charged $350.00, up from $250.00. Hedge fund investors (larger companies) will be charged $473.00 compared to a previous $338.00. Because these rates are bumped up between three and four times a year, this week's announcement comes as no surprise, one market analyst said.
"If corn prices go above $3.00 per bushel, I wouldn't be surprised to see the rates go up again," one analyst said. "I've seen them as high as $800.00 per contract." For mini-corn contracts (1,000 bushels), hedgers will be charged $70.00 per contract, up from $50, while larger investors will pay $95.00 compared to $68.00. |
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