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
U.S. grain export inspections stayed solid for the week ending May 7, with corn still leading the export pace and soybeans posting a strong weekly rebound.
U.S. beef imports are running at a record pace while exports are falling, reflecting tight domestic cattle supplies and high U.S. beef prices.
ASFMRA’s Chad Hertz joins us to discuss farmland trends, economic pressures facing producers, and how outside influences are shaping today’s land market.
“Irresponsible Lending Has No Place in Government Programs,” the U.S. Department of Agriculture said in a press release.

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:

Suderman joins Tony St. James in the RFD Studios to discuss how geopolitical tensions are triggering global transport disruptions, new inflation pressures, and other challenges for agriculture to navigate.
Farm CPA Paul Nieffer explains the Farmer Bridge Assistance payment limits, provides clarity on new legislation, and offers advice for producers considering business structure adjustments.
Dr. David Anderson with Texas A&M University AgriLife Extension discusses how geopolitical tensions and the Middle East, along with export disruptions in the Chinese market, will shape cattle markets in the months ahead.
Refining shifts could influence fuel and input costs.
Energy shifts influence diesel and fertilizer costs.
ASFMRA’s Craig Thompson shares insights for American farmers who are navigating farmland markets amid agricultural uncertainty.