BofA Boosts Ag Commodity Targets Amid Supply Risks

Bank of America has raised its price targets for several agricultural commodities due to expected tighter supply conditions in the 2026-27 marketing year. The bank increased its price forecast by $1.50 per bushel to $13.50 per bushel for soybeans, citing lower production prospects and stronger crush demand.

For corn, the bank maintained its new crop price target at $5.50-6.00 per bushel, but noted that unfavorable pollination weather has put US corn yields at risk, pushing the 2026-27 stock-to-use ratio towards levels historically associated with major bull markets below 10%.

The bank also lifted its price target to 20 cents per pound from 17 cents per pound for sugar, due to production losses in Europe and excessive rain risks in Centre-South Brazil. For wheat, the bank now sees prices moving towards $8-10 per bushel compared to $7.70 per bushel previously.