A options trader has spent over 20 million US dollars betting that the price of corn will rise to a three-year high.

A options trader has invested over $20 million, betting that corn prices will rise to their highest level since 2023. As U.S. corn exports hit a record high, American farmers have reduced corn planting area in the spring planting season. On Wednesday, the Chicago Mercantile Exchange traded a 105,000-lot November 5.50/6 call spread option trade, equivalent to over 500 million bushels of corn. Due to the impact of the heat wave, the growth of American crops has weakened, and July is usually the most crucial month for the growth and development of American crops. With U.S. corn planting area at its lowest level in two years, analysts had previously stated that whether yields further decline or demand continues to grow, it could drive prices higher. On Wednesday, December futures prices rose by 2% to $4.8475 per bushel, with a cumulative increase of 11% this month. The last time the price of the most actively traded futures contract was above $5.50 per bushel was in July 2023. If corn prices rise by nearly 15% to $5.50 per bushel from current levels, this bet will start to pay off; if prices rise to $6 per bushel, the maximum profit could reach around $250 million. The scale of this trade has sparked market speculation that the trader is a hedge fund or other large investor, rather than a hedging demand from end users.