In commodity market terminology, Corn Swaps refer to swaps where the risk for one corn futures contract is “swapped” with the risk of another. Basis Swaps allow hedgers to manage the risk of price differentials between futures delivery points and local markets, while Calendar Swaps offer a way to manage price volatility from one month to another. Corn refers to a tall cereal grass which grows kernels on ears and is used for food for humans and animals.
The Chicago Mercantile Exchange or CME group offers a number of Corn Swaps that are traded on their ClearPort electronic trading platform. They include these contracts: Corn Calendar Swap, Eastern Nebraska Basis Swap, Eastern South Dakota Basis Swap, Northeastern Iowa Basis Swap, Northwestern Iowa Basis Swap, Southern Iowa Basis Swap and the Southern Minnesota Swap.