July corn closed down 4 ½ cents to 429, which is just above the 6-month low. December corn closed down 2 cents. Meanwhile, a serious heatwave this weekend and into next week will hit already dry areas in western Iowa, eastern and central Nebraska, and northern Illinois, adding significant crop stress. Corn is cheap and potentially oversold. Keep reading for some bullish strategies. 
 

Argentina’s corn harvest is at 49% complete, up 2% this week. Brazil’s second crop corn harvest is at only 5%, compared to 21% a year ago. Brazil has faced late season rains, slowing down harvest. 

The recent rally in crude oil has boosted the Invesco Commodity Index, supported by a bullish falling wedge pattern and rising momentum. Major banks are projecting further gains: JP Morgan sets its crude oil price target at $120 to $130 a barrel, while Goldman Sachs and Citi estimate prices could reach $90+. These forecasts factor in potential disruptions, such as impacts on Iran’s oil infrastructure or a closure of the Strait of Hormuz.

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Although crude oil may be overbought near-term, ongoing tensions in the Middle East could easily spark another rally. Such a move would also benefit the grains. This week’s Commitment of Traders report is delayed until Monday, but money could start flowing back into grains as summer kicks off.

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Please consider the following:

September’25 Corn was 429 when these trades were structured.

Buy 1 September’25 450 Call 10 7/8

Price: 10 7/8 Cost: $543.75/Trade Package, Plus Fees and Commissions

 September’25 Corn Options Expire 8/22/25 (65 Days) MAXIMUM LOSS: LIMITED

Buy 1 September’25 430 Call 17 5/8     

Sell 1 September’25 480 Call 5 1/8     

Price: 12 ½        Cost: $625.00/Trade Package, Plus Fees and Commissions 

September’25 Corn Options Expire 8/22/25 (65 Days) MAXIMUM LOSS: LIMITED

Buy 1 December’25 475 Call 14 ¾ 

Price: 14 ¾    Cost: $737.50/Trade Package, Plus Fees and Commissions 

December’25 Corn Options Expire 11/21/25 (156 Days) MAXIMUM LOSS: LIMITED 

Buy 1 December’25 450 Call 22 5/8     

Sell 1 September’25 500 Call 9 5/8     

Price: 13        Cost: $650.00/Trade Package, Plus Fees and Commissions 

December’25 Corn Options Expire 11/21/25 (156 Days) MAXIMUM LOSS: LIMITED

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Hans Schmit, Walsh Trading

Direct 312-765-7311 Toll Free 800-993-5449

hschmit@walshtrading.com    www.walshtrading.com

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