Terrain Projects Large Grain Supplies and Tighter Margins Ahead

Large carry-in stocks across major crops could limit price recovery in 2026/27 unless demand strengthens or weather-related supply reductions occur.

Melissa_Eshelman_12_28_19_USA_IA_Eshelman_Farms_049.jpg

Melissa Eshelman (FarmHER Season 2, Ep. 10)

FarmHER, Inc.

NASHVILLE, Tenn. (RFD NEWS) — Farmers heading into the 2026/27 marketing year face another season of strong production potential but limited pricing power, according to economists with Terrain. Large carry-in stocks across major crops are expected to keep supply comfortable and cap upside price movement unless weather or demand shifts meaningfully.

Terrain’s Early Grain Outlook projects corn planted area at 94 million acres with a trend yield of 183.5 bushels per acre, pushing production above 15.8 billion bushels. With beginning stocks above 2.15 billion bushels, total supplies could exceed 18 billion. Ending stocks are projected above 1.9 billion bushels, with an average farm price near $4.33 per bushel.

Soybean acreage is expected to rebound to 85 million acres. Production near 4.46 billion bushels and larger beginning stocks could lift total supplies more than 7 percent year over year. Even with higher exports—including assumed Chinese purchases—ending stocks near 370 million bushels could keep prices near $10.31 per bushel.

Wheat acreage is projected at 45.1 million acres, among the lowest since records began. While production may fall 4 percent, large carry-in stocks keep total supplies flat. Terrain forecasts an average wheat price of $5.46 per bushel, reflecting improved alignment rather than tight fundamentals.

Sorghum acreage could dip to 6.5 million acres, but large beginning stocks may push total supplies up 16 percent. Without significant Chinese demand, Terrain estimates a $3.69 per bushel average farm price.

Economists at Terrain emphasize that profitability will depend on disciplined marketing, updated break-even calculations, and the ability to capture short-term price rallies in a well-supplied global market.

Farm-Level Takeaway: Large carry-in stocks across major crops could limit price recovery in 2026/27 unless demand strengthens or weather-related supply reductions occur.
Tony St. James, RFD NEWS Markets Specialist
Related Stories
CECU President and CEO Jason Altmire discusses rural workforce shortages, technical skills, and why hands-on labor remains critical despite AI growth.
Senate Majority Leader John Thune says senators are trying to align the E15 effort with broader Farm Bill negotiations as producers continue grappling with weak farm income and elevated costs.
Soybeans accounted for nearly half of the $15 billion in losses on U.S. ag exports to China due to tariffs, according to researchers at North Dakota State University.
Feed grain supplies may tighten in 2026/27, supporting higher corn and sorghum prices despite large crops.

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

LATEST STORIES BY THIS AUTHOR:

Corn exports remain the clear demand leader.
Labor supply may shift, but uncertainty remains for producers.
Spring Fieldwork Expands While Weather Challenges Persist Nationwide
Rising costs and prices are shifting acreage toward soybeans. Most fertilizer prices are up double digits from this time last year, with Urea seeing the largest gains.
Hiring may ease slightly, but labor shortages remain persistent.
Price volatility is driving shifts in demand and supply innovation.