Corn Futures Continue Nine-Day Rally Amid Strong Demand
Corn futures have been on an upward trend for nine consecutive days, with analysts predicting continued growth due to strong demand. According to Stephen Davis, senior market strategist at Walsh Trading, Inc., this surge in prices is likely driven by increasing corn usage.
The World Agricultural Supply and Demand Estimates (WASDE) report from the U.S. Department of Agriculture released on August 12 forecasts lower supplies, unchanged domestic use, larger exports, and smaller ending stocks for the upcoming year. Corn production is projected at 16.0 billion bushels, marking the second-largest U.S. corn harvest on record.
Davis suggests that the current market conditions make it an attractive time to buy December 2026 corn futures, recommending a trade strategy of purchasing at $509½ per contract with a stop-loss order set at $499½. He also proposes buying March 2027 corn options with a target price of $529½.
Davis emphasizes the importance of understanding that trading involves substantial risk and may not be suitable for all investors.