Time to think about U. S. corn

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

Yesterday's sharp selloff of crude oil and other energy futures is likely the reason for today's selloff of corn futures. Daily trading volume at 411,660 contracts on March 9 was the second highest for corn futures in the last 12 months. In my opinion, this is very important as managed-money traders are likely looking for the next hot commodity.

Strong buying last week has likely pushed the managed-money traders' net long position to nearly 100,000 contracts. Look for this to continue. I like the daily corn chart below – prices are above the 200-day moving average and going down.

The United States Department of Agriculture World Agricultural Supply and Demand Estimates (WASDE) report today stated that this month’s 2025/26 U.S. corn outlook is unchanged relative to last month. The season-average corn price received by producers is unchanged at $4.10 per bushel. Global coarse grain production for 2025/26 is forecast 2.7 million tons higher to 1.593 billion. Higher than expected world corn stocks are likely contributing to lower prices. Upcoming reports will hold more interest, revealing the mix of soybeans and corn to be planted in the United States. The weather and its effects on crops is  unknown. 

Yesterday's highs sparked heavy selling. In my opinion corn futures prices will not go much lower and demand for corn should support buyers.  

A trade strategy is to buy May 2026 corn at 445.5 (today's low). Risk the trade to 435.5 stop. Profit objective is 470.0 per contract.  Profit potential is $1,250 and the risk is $500 per contract . That is a good 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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