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Last Friday’s crop report was mostly in line with expectations for corn, although the yield cut was not quite as bullish as the average pre-report estimate. The USDA estimated the corn yield at 178.5 bushels per acre, down 2.2 bpa from last month. New crop corn ending stocks tightened by 86 million bushels from last month to 1.567 bb. Stocks-to-use is now 9.7% from 10.1% previously, which is the tightest since 2021/22. World ending stocks were also cut by 2.6 mmt from last month’s report to 272.1 mmt. The estimate for world ending stocks is down significantly from the 2025/26 figure of 301.4 mmt. Friday’s Commitments of Traders report showed managed money still held a major long position in corn at over 425,000 contracts. Higher energy prices and restricted grain movement can continue to support prices, in addition to El Niño affecting planting South American planting in the last few months of the year.
Consider the following opportunity:
FUTURES SPREADS
Buy the December-March Corn Spread (ZCZ26-ZCH27)
PRICE: -14 ½ cents
The trade above allows you to have a bullish position in corn with less risk than being long the outright futures. The margin is $275 per spread.
If you’re ready to start trading, click the link below to open an account with Walsh Trading, Inc.
Hans Schmit
Broker, Pure Hedge Division
312-765-7311
hschmit@walshtrading.com
Walsh Trading, Inc. is registered as a Guaranteed Introducing Broker with the Commodity Futures Trading Commission and an NFA Member.
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