Corn Prices Set to Rise Amid Strong Demand and Bountiful Harvest
The price of corn futures has been flat this week due to anticipation of the upcoming Crop Production report by the United States Department of Agriculture (USDA) National Agricultural Statistics Service (NASS).
An analyst survey by Reuters estimated yields at 182.4, down from 183.0 in July.
Stephen Davis, senior market strategist at Walsh Trading, believes that corn prices will go higher in September and October after the harvest due to strong demand from war-ravaged Russia and Ukraine, as well as European countries suffering intense heatwaves expected to lower corn production.
Davis recommends two option trade strategies: buying December 2026 corn $5.00 call at 7.4 ($375 per contract) or a March 2027 corn at 480/580 call spread at 19.0, good til cancelled (GTC).