Corn’s Bottom is Near—Buy These Ag Plays Now!

The global corn market has been in a slump, but don’t be fooled—this is a buyer’s paradise. South Korea’s National Open Storage Facility (NOFI) and Kenya Flour Millers Association (KFA) are scooping up massive quantities of corn at discounted prices, signaling to investors that the bottom is in and a rebound is imminent. Let’s dig into the data and why you should act now.

1. Why South Korea’s Buying Spree Matters

NOFI and KFA have purchased 197,000 metric tons of corn combined for the 2024/25 season—132,000 tons via tender and 65,000 tons privately—despite global CBOT futures plummeting 12-15% this year. Here’s the key: they’re paying a $10/ton premium to futures prices, down from $15/ton in 2023/24. This isn’t panic buying—it’s strategic hedging against supply chain risks and a bet that prices will rebound.

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2. The Supply Tightening Catalyst

The USDA’s May report reveals a hidden bullish truth:
- U.S. ending stocks for 2024/25 are now 1.415 billion bushels, a 200 million bushel cut from April due to stronger exports.
- Brazil’s safrinha crop, critical to global supplies, faces localized droughts in key regions like Paraná. Even with record 2025/26 U.S. output, 2024/25 ending stocks are the tightest since 2022.

The math is simple: Lower stocks + supply chain risks = price support.

3. Why the Premiums Prove Corn is Undervalued

KFA’s premium reduction to $10/ton isn’t weakness—it’s confidence. Buyers are telling us: “We know futures are oversold.” Here’s why:
- Global corn futures are at multi-year lows due to overly pessimistic demand forecasts, but South Korea’s procurement shows real-world demand is resilient.
- The disconnect between $35,000/shs for Ugandan farmers (14% higher than last year) and falling CBOT prices? It’s a valuation gap. Physical markets see value where paper traders don’t.

4. The Plays to Make Now

This is your chance to lock in gains as the market corrects:
- Go Long on CBOT Corn Futures (CZ24/CH25): Prices are primed to rebound once U.S. planting progress and South American harvests confirm supply tightness.
- Buy Ag Traders with Exposure to Asia:
- CHS Inc. (CSH): A U.S. ag cooperative with deep ties to global corn markets.
- Pan Ocean (009770.KS): A South Korean logistics giant capitalizing on procurement demand.

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The Bottom Line

South Korea’s buying binge isn’t a blip—it’s a battle cry that corn’s bottom is here. With supply chains under pressure and premiums signaling undervaluation, this is your moment to position for the rebound. The bears have had their day—now it’s time for bulls to roar.

Act now before the crowd catches on.

Disclosure: This is not financial advice. Consult your advisor before investing.