CME Group plans to launch sorghum basis futures on Aug. 24, 2026, pending regulatory review. The new contract reflects the price difference between sorghum and corn, two grains used in animal feed and ethanol production. Sorghum’s premium over corn typically signals international demand driving prices higher. A deep discount prompts domestic buyers to shift feed rations toward cheaper sorghum.
“While sorghum prices tend to track corn closely over extended macroeconomic cycles, geopolitical events and regional supply shifts can disrupt that relationship,” said John Ricci, managing director and global head of agricultural products at CME Group. “In recent years, the sorghum-to-corn cash spread has experienced considerable volatility, swinging from sharp premiums to steep discounts.”
The contracts will be physically delivered, with grain loaded by truck or rail from elevators in Kansas, the nation’s largest sorghum-producing state, using the established Kansas City Hard Red Winter Wheat delivery network.
CME Group achieved record quarterly volume of 2.1 million contracts for agricultural products in the second quarter of 2026. Corn futures and options reached record open interest of 4.1 million contracts.
The contracts will be listed on the Chicago Board of Trade.
