Grain Market Tightens Amid Record Deficit and Rising Futures

Global grain markets have tightened significantly in recent years due to smaller crop yields and strong demand.

A report by Raymond James notes that global corn consumption is expected to exceed production by approximately 29 million tonnes in 2026/27, marking the largest absolute deficit in 33 years, according to Karen Braun, Chief Market Analyst at Zaner Ag Hedge.

The stocks-to-use ratio has dropped to 9.7% from 12.1% earlier this year, falling below the 10% threshold, which indicates a tighter market.

Corn futures have risen 8% since May 1, while wheat futures have gained 12%, with combined corn and wheat production across major exporters expected to decline by 84 million tonnes year-over-year.