I am Stephen Davis, senior market strategist at Walsh Trading, Inc., Chicago, Illinois. You can reach me at 312-878-2391.
The first daily chart below for May 2026 Corn futures shows prices well above the 200-day moving average. Any market above the 200-day moving average looks bullish, in my opinion. The second chart shows three weeks of lower highs and lower lows. Often markets go in threes, which points to higher prices, in my opinion.
One factor to consider is the potential for lower global yields due to the scarcity of fertilizer. Farmers face higher costs for whatever fertilizer is available and may be forced to use less than ideal amounts in the coming growing season. The escalating cost of diesel fuel will also affect planting costs. Also, corn planted area for all purposes in the United States in 2026 is estimated at 95.3 million acres, down 3 percent or 3.45 million acres from last year, according to the United States Department of Agriculture (USDA) Prospective Plantings report dated March 31.
Tonight, corn is gapping lower. At 7:12 pm CDT, May 2026 Corn was trading at 443.0, down 6.0 from the close today at 3 pm.
A trade strategy is to buy May 2026 Corn at 443.0 or better. Stop loss is 433.0 stop. Profit objective is 465.0 per contract, good til cancelled (GTC). You are risking 10 cents ($500) on the trade for a profit potential of 22 cents per contract. That's an excellent risk/reward ratio, in my opinion.
To discuss trading strategies, contact me anytime. Have an excellent day.
Stephen Davis
Senior Market Strategist
Walsh Trading
Direct 312 878 2391
Toll Free 800 556 9411
sdavis@walshtrading.com
www.walshtrading.com
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