Corn Prices Hold Steady Amid Anticipation and Global Demand Surge
U.S. corn prices remain flat this week due to anticipation of the upcoming Crop Production report by the 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. However, corn is past the pollination stage and significant yield reduction in major growing states is unlikely, especially with rain predicted this week.
Stephen Davis, senior market strategist at Walsh Trading, believes that demand will need to exceed a bountiful harvest for prices to move higher in the coming weeks. He cites strong demand from war-ravaged Russia and Ukraine, as well as European countries experiencing intense heatwaves that may lower corn production.
Davis predicts that corn prices will rise in September and October following the harvest. In terms of trading strategies, he recommends buying December 2026 corn $5.00 call at 7.4 ($375 per contract) or a March 2027 corn 480/580 call spread at 19.0 (good til cancelled).