Nine days of higher highs in the soaring corn market

I am Stephen Davis, senior market strategist at Walsh Trading, Inc., Chicago, Illinois. You can reach me at 312-878-2391.

Corn futures are on the rise this week on the heels of nine days of higher highs. In my opinion, the demand for corn is going to drive prices higher this fall and into early next year. Sunday night, corn gapped higher and in my mind, that is very bullish. Managed money is net long over 250,000 contracts according to an August 18 report with no compelling reason to exit their positions at the moment.

Released on August 12, the monthly World Agricultural Supply and Demand Estimates (WASDE) report from the United States Department of Agriculture says this month’s 2026/27 U.S. corn outlook is for lower supplies, unchanged domestic use, larger exports, and smaller ending stocks. Corn production is forecast at 16.0 billion bushels, up just 13 million from last month. This would be the second largest U.S. corn harvest on record, according to the report.

A trade strategy is to buy December 2026 corn at 509½ per contract, which just under yesterday's low. Risk the trade 499½ stop, good till cancelled (GTC). That is a good entry point, in my opinion. Project objective is to sell December 2026 corn at 529½, GTC.

An option trade strategy is to buy March 2027 corn 650 calls at 7.00 ($350 per option contract). These options expire March 12, 2027. 

To discuss trading strategies, contact me anytime. Have an excellent rest of your 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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