The corn market closed higher today as conditions become more favorable for an accelerated corn harvest in the United States. 

In its weekly Crop Progress report released yesterday, the United States Department of Agriculture (USDA) reported that 23 percent of the corn crop had been harvested. This is behind the five-year average of 27 percent for this time of year. The USDA reports that 83 percent of this year’s corn crop in the top 18 corn-growing states had reached the mature stage, level with the five-year average.

However, excellent weather is ahead for farmers to pick up the pace, especially in Iowa and Nebraska where corn harvests are behind the average. 

As harvest in the U.S. is nearing its end, Brazil and Argentina, the two largest competitors to U.S. corn and soybean exports, are beginning their planting season. El Nino, which is predicted to become the strongest on record by the end of the calendar year, will play an outsized role in the weather patterns for the next several months. 

Meanwhile, European Union corn prices are reaching new contract highs, in part linked to lower production due to extreme heat and drought in some areas. 

Demand needs to increase if the market is going to rebound to September highs. Significant resistance for December 2026 corn is at 520 and in my opinion, that’s where the market is headed in the short term. The monthly corn chart below is trending higher and we have a nice pull back to buy into. 

An option trade strategy is to buy March 2027 corn 570 call at 10.0 ($500 per option contract). These options expire February 19, 2027. 

Another option strategy is to buy May 2027 corn 570 call at 17.0 ($850 per contract). These options expire April 23, 2027.

In my opinion, one could prosper from the volatility that lies ahead instead of being run over by it.