Corn Prices Expected to Rise as Demand Surges Amid Global Turmoil

Corn futures have remained flat this week in anticipation of the upcoming Crop Production report from the United States Department of Agriculture (USDA) National Agricultural Statistics Service (NASS), set to be released tomorrow.

An analyst survey by Reuters estimated yields at 182.4, down from 183.0 in July, but corn is past the pollination stage and significant yield reduction is unlikely, especially with predicted rain this week.

Demand for corn will likely drive prices higher, according to Stephen Davis, senior market strategist at Walsh Trading, Inc., who notes that demand will be strong for the rest of the year, particularly from war-ravaged Russia and Ukraine, European countries hit by heatwaves, and increased exports to Asian countries.

Davis predicts corn prices will increase in September and October after the harvest. He recommends two option trade strategies: buying December 2026 corn $5.00 call at 7.4 or a March 2027 corn 480/580 call spread at 19.0, with potential gains of up to $5,000.

Futures and options trading involves substantial risk, and traders should carefully consider their financial condition before making investment decisions.