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One Way to Position for $150 Silver
On Friday, Silver broke through the $ 100-per-ounce mark, creating a perfect storm of conditions that could drive the market to unprecedented levels. Several factors contributed to the recent surge, including a multi-year supply-and-demand imbalance, booming industrial demand (especially for EVs, AI, and solar), rising investment demand, and increased geopolitical risks, all of which could point to another extension higher.
Silver has already risen by more than 40% in 2026, reflecting a broad repricing of metals. The continued buying of Gold by central banks and the inflow of private investments into exchange-traded funds (ETFs) are key structural factors that could support both Gold and Silver. These trends could potentially boost Silver prices to $150 and Gold prices to $5,500.
Silver continues to experience a remarkable surge, reminiscent of Gold’s performance, and follows several key technical analysis principles. After breaking through critical resistance levels at $50 and rising to $82 per ounce, futures reached a double top before forming a bullish pennant pattern. This bullish pennant eventually broke, fueling the rally and pushing prices above $100 per ounce.
Currently, there is a clearly defined trading range between $50 and $82. After a period of consolidation, we could see another extension of $32 higher, potentially pushing prices into the $115 to $120 range. We believe that a breakout above the $115 to $120 range could set the stage for prices to reach $150 per ounce, later in the year.
Example Silver Options
We firmly believe that a “Commodities Supercycle” is currently underway, and Silver is now facing its fifth consecutive year of deficit, and a squeeze is underway. To prepare, we are constructing long-dated call spreads in the Silver market for our clients.
For Example purposes only, one could purchase the August 2026 Silver futures $130.00 call option while selling an August 2026 Silver futures $140.00 call against it. The plan will create a calculated risk Bull Call spread and costs $7,500 plus any commissions and fees, while your maximum gain would be $50,000, less your initial cost, if silver futures close above $140.00/oz at expiration on July 28, 2026. We believe this strategy achieves a low-risk high reward profile. Staying ahead of the Silver market has never been easier.
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Corn:
Quick Facts
- Both U.S. production and yields are projected at record highs.
- Ending stocks are projected at the highest level since 2019.
- Accumulated exports for 2024/25 are on the best pace in more than 10 years, and closely tracking 2020/21’s strong performance.
- New crop 2025/26 accumulated exports slightly lag 2020/21’s early performance, but remain above the 5-year average.
- Aug E/S: 2,117 mln bu
- Aug Stocks / Use: 13.27
What to Watch For
- Total U.S. Corn production estimates
- Yield adjustments
- Domestic use tendencies
Commentary
This is the first WASDE report in which subjective, on-field data will be incorporated into yield estimates. If the results from the Pro Farmer Crop Tour are any indication, USDA is way over its skis with the 188.8 estimate. However, the question is whether the U.S. corn crop is still getting bigger or not. Further increases to production place a heavier burden on swelling ending stocks. Domestic and export demand have been strong for corn, but that effect is dampened if production keeps ticking higher. An unchanged or lower-than-expected increase in production could help corn futures maintain the recent trend of higher-highs and higher-lows.
Soybeans:
Quick Facts
- Soybean planted area is at its second-lowest level in the last decade, ahead of only 2020’s 76.1 mil acres.
- The expected harvested area for 2025/26 soybeans is 5.971 mil acres below last year’s realized harvested area of 86.1 mil acres.
- Last September, USDA pegged soybean yields at 53.1 bpa, and realized yield was 2.4 bpa lower at 50.7 bpa.
- U.S. soybeans are the cheapest in the Western Hemisphere by a considerable margin.
What to Watch For
- 2025/26 export projections
- Chinese soybean imports
- Yield adjustments
Commentary
Unlike corn, we know the American soybean crop is shrinking. Last month’s 1.9 million acre reduction to planted area was arguably a “bigger deal” than the eye-popping corn yield estimate because it instantly made an average-sized crop into a relatively small crop. The biggest inhibitor to a sustained rally in soybeans has been the lack of Chinese demand. Now that U.S. soybeans are the cheapest in the world on an FOB basis, the question is whether or not China comes to the table. Despite China’s absence, U.S. soybean export demand has been solid, with accumulated sales within the 10-year average range. So, what does the soybean market look like if China plays ball? If you’re going to use historical stocks-to-use data relative to the current price, the argument can be made that soybeans are currently undervalued.
Enjoy the benefits of Blue Line Futures
Open an account with Blue Line Futures and you will gain access to our daily commodity commentary, free desktop/mobile trading platforms, 24-hour trade desk, and more!