Walsh Corn Opportunities - Pure Hedge Division

Corn bounced today off support at 420 despite, the unfriendly WASDE report and Grain Stocks report on Monday. The USDA found an extra 1.3 million harvested acres and increased the yield by half a bushel. Exports continue to be strong and corn remains technically strong. Global ending stocks are tight, compared to 2024/25 and 2023/24. Global ending stocks for corn are estimated at 290.91 mmt, at an 11.76 mmt increase from December, but lower than the 294.70 mmt seen in 2024/25 and 315.42 mmt in 2023/24. 

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However, domestic ending stocks are very large at 2.2 bb, compared to 1.763 bb in 2023/24. There were flash sales this morning for 120k mt of corn to Japan, in addition to 298k mt to an unknown destination. There have been a number of larger flash sales recently to an unknown country, and it’s not unreasonable to assume its China. Argentina’s corn conditions were down 11 points this week to 64% good/excellent because of dryness concerns in the Pampas region. Corn is also seeing some support from strength in wheat with funds likely doing some short covering ahead of the long weekend. Today’s Commitment of Traders report showed funds adding to their short position selling another 65k contracts. Managed money has a total short position of 81k contracts, as of Tuesday. 

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I feel that corn may trade sideways to lower in the near future before getting ready for the next leg higher.

Consider buying the July 420 puts for protection if you are a producer. 

JULY’26 CORN

BUY 1 JULY ’26 420 PUT 10 1/2

PRICE: 10 1/2 CREDIT COST: $525.00 DEBIT/TRADE PACKAGE, PLUS FEE AND COMMISSIONS.

MAXIMUM LOSS: LIMITED

JULY’26 CORN OPTIONS EXPIRE 6/26/26 (161 DAYS)

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Having a Trading or Hedging Account is essential for your business to be successful. Market volatility has increased across all commodities over the last 12 months, and I expect it to continue to increase in 2026. Opening an account in the future, will definitely not help you if you need access now. To be successful, you need to be able to manage risk in real time. If you are proactive now, you will have the ability to be reactive when you need to be. You can be prepared and patient at the same time. Call me or hit the direct link above.

Hans Schmit
Broker, Pure Hedge Division 
312-765-7311
hschmit@walshtrading.com

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