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CME Group to launch sorghum basis futures starting Aug. 24

The new physically delivered contracts are tied to the price spread between sorghum and corn, an instrument designed to hedge basis risk that has swung between premiums and discounts.

Reported · Written up by our desk · Agriculture

CME Group said it plans to launch sorghum basis futures, with trading expected to begin Aug. 24, pending regulatory review, according to World Grain.

The contract is designed to reflect the price difference between sorghum and corn, two grains used for animal feed and as ethanol feedstock, and CME Group said sorghum’s premium over corn often signals international demand.

CME Group linked the launch to persistent volatility in the sorghum-to-corn cash spread, noting that geopolitical events and regional supply shifts can disrupt the relationship between the two grains, and it described the futures contract as a tool to hedge basis risk.

The contracts will be physically delivered via grain loaded out by truck or rail from elevators in Kansas, using the Kansas City Hard Red Winter Wheat delivery network, and the article also cites CME Group’s record agricultural products volume of 2.1 million contracts in the second quarter of 2026.

Latest closeWheat $694.50 ▼1.6%|Corn $486.75 ▲5.4%

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