Will corn be in short supply going into 2027?

I am Stephen Davis, senior market strategist at Walsh Trading, Inc., Chicago, Illinois. You can reach me at 312-878-2391.

The September 11 United States Department of Agriculture (USDA) World Agricultural Supply and Demand Estimates (WASDE) report says this month’s 2026/27 U.S. corn outlook is for smaller supplies, lower domestic use, unchanged exports, and reduced ending stocks. Projected beginning stocks for 2026/27 are 23 million bushels lower based primarily on a larger export forecast for 2025/26. Exports are unchanged at 3.3 billion bushels despite lower production, reflecting expectations of steady demand, according to the report.

In my opinion, if yield declines and there an increase in demand, the corn market is likely to rally.

I am bullish on the corn market for two other reasons. Number one is that December 2026 corn gapped higher on August 24 and has continued to go up.

Number two is the four months of higher highs and higher lows in the current corn market as shown on the monthly chart. 

In my opinion, markets go in threes and this is the fourth monthly wave high. The trend is higher prices and in my opinion it will continue this way into early 2027. 

A trade strategy is to buy December 2026 corn at 531.0, good til cancelled (GTC). Today's low is 527.2. Risk the trade 521.0 stop, GTC. Profit objective is to sell December 2026 corn at 551.0 for a profit of $1,000 per contract.

An option strategy is to sell two December 2026 corn 520 puts at 12½  ($1,250 total). With that premium in your account, buy March 2027 corn 560 call at 25½  ($1,275 per contract). The puts you sell will pay for the call you buy. December corn options expire November 20, 2026. 

To discuss trading strategies, contact me anytime. Have an excellent day and healthy, prosperous new year. 

Stephen Davis
Senior Market Strategist 
Walsh Trading

Direct 312 878 2391 
Toll Free 800 556 9411
sdavis@walshtrading.com  
www.walshtrading.com

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