Trade Agreements Expected to Increase Demand for U.S. Corn

Corn Futures Show Upward Trend

The chart indicates that corn futures are on an upward trajectory.

This year, there’s expected to be an increase in demand for corn, particularly from Southeast Asian nations. The Office of the U.S. Trade Representative noted, “This week, President Trump signed reciprocal trade agreements with Malaysia and Cambodia, and a framework was established for further agreements with Thailand and Vietnam. These agreements show the U.S. can decrease the trade deficit while still maintaining tariffs and enhancing market access for American goods.”

In other news, the deadline for additional tariffs on Mexico, originally set for November 1, has been extended to allow for further negotiations. Mexico remains the largest buyer of U.S. corn, with purchases projected to reach $5.51 billion in 2024, as reported by the USDA Foreign Agriculture Service.

On October 28, the volume for December corn was 356,000 contracts. I believe that the total for the first month of this year could hit around 500,000 contracts, leading to a rise in price.

The recommended trading strategy is to buy December corn futures at 427. It’s wise to set stop-losses at 417, with a profit target of 457—essentially, you’re risking one for the chance to gain three.

For options, consider selling two March 2026 corn futures puts at 425 for 7.0. If you have this premium, you might want to buy a March 2026 corn call at 450 for 14.00. Using the premium from the puts can help cover the cost of the calls you buy.