Trade Deals Likely to Fuel Demand for U.S. Corn

Looking at the charts below, I see market action in corn futures trending higher. 

An increase in corn demand from Southeast Asian countries is likely this year. The Office of the United States Trade Representative reports that “This week, President Trump signed Agreements on Reciprocal Trade with Malaysia and Cambodia and reached Frameworks for Agreements on Reciprocal Trade with Thailand and Vietnam. These historic deals demonstrate that America can maintain tariffs to lower the goods trade deficit while expanding Americans’ market access.”  

Meanwhile, the November 1 deadline for additional tariffs on Mexico has been extended a few more weeks to allow for more negotiations. Mexico continues to be the top buyer of U.S. corn – $5.51 billion in 2024 – according to the USDA Foreign Agricultural Service. 

Volume in December corn today, October 28, was 356,000 contracts. In my opinion, front-month corn volume will reach 500,000 contracts and prices will go higher this year. 

A trade strategy is to buy December corn futures at 427. Risk the trade to 417 stop. Profit objective is 457. You are risking one to make three. 

An option strategy is to sell two March 2026 corn futures at 425 put at 7.0. With that premium in your account, buy one March 2026 corn 450 call at 14. The premium will pay for the call you buy. 

Contact me anytime for more information about options and futures.

Stephen Davis
Senior Market Strategist 
Walsh Trading

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