CME Group to launch Sorghum basis futures
In Illinois, CME Group announced plans to launch Sorghum basis futures. Trading is expected to start on August 24, 2026, pending regulatory review. 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, by using the established Kansas City Hard Red Winter Wheat delivery network.
The new basis contract reflects the price difference between sorghum and corn, two types of grain used in animal feed as well as ethanol feedstock. Sorghum’s premium over corn usually signals international demand driving values higher. A deep discount compels domestic buyers to shift feed rations toward cheaper sorghum.
Category: Fuels
