January 16, 2026

Mid-Co Morning Comments:
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• Grain markets are mixed this morning after opening higher overnight. Corn spreads have firmed following the WASDE report, with CH/CK trading in to -7 ¼. Farmer selling remains light, with producers holding onto grain and waiting on a government payment.
• Soybean oil futures have stabilized after a strong rally this week, supported by positive biofuel headlines. Crush margins remain near their highest level since August, estimated around $1.65/bu. Improved margins have helped support soybean processor basis levels.
• Federal Reserve commentary continues to signal a strong bias toward holding policy steady, with officials favoring modestly restrictive monetary conditions. Inflation remains the primary concern, and several policymakers noted there is little justification for near-term rate cuts.
• South American weather: Forecasts call for abundant rainfall across much of Brazil this weekend, including additional moisture for southern growing areas such as Rio Grande do Sul. Harvest activity in Brazil’s northern states is expected to ramp up over the next two weeks. Moisture prospects in Argentina remain variable, though no extreme heat is currently forecast.
• Canada’s prime minister stated in Beijing that progress is being made toward resolving long-standing trade barriers across key agricultural sectors. Discussions reportedly showed meaningful progress, particularly regarding canola and currency-related trade issues.
• Reminder: Grain markets will be closed Sunday night and Monday in observance of MLK Day, with trading resuming Monday night at 7pm. Have a great weekend.