Corn Prices Soar on Disappointing Crop Yields
The corn futures market has reached a three-month high due to disappointing yields reported during the first day of the Pro Farmer Crop Tour in South Dakota and Ohio. The tour's numbers suggest that U.S. corn crop ending stocks may be lower than previously estimated.
Fundamentals in the corn market are bullish, and technical analysis also points to higher prices. Demand for U.S. corn is expected to remain strong into early 2027 due to heat-related crop damage in European countries.
Stephen Davis, senior market strategist at Walsh Trading, recommends buying December 2026 corn futures at 482.0 with a stop-loss of $600 per contract at 470.0 and a profit target of $501.0 for a potential gain of $1,950 per contract.
An alternative strategy is to buy March 2027 corn call spreads at 510/610 for a cost of $20.00 ($1,000 per spread), with a maximum profit potential of $5,000 and expiration on February 19, 2027.