August 28, 2026

Mid-Co Morning Comments:

• Happy Friday. Grain markets are firmer this morning with CZ26 ($5.41) and SX26 ($12.81) both notching fresh highs overnight. Corn spreads remain firm, with just 229 contracts of CZ/CH trading overnight at -14. Wheat continues its run as well, with ZWU making a new high of $7.53. The bulls are getting fed this week.
• Geopolitical headlines remain front and center with U.S./Canada relations, U.S./China relations, the Iran war, and the Russia/Ukraine conflict all in play. Russia/Ukraine feels like the story grabbing the most attention right now, and for good reason. An estimated 700 ships are stuck in the Black Sea as grain shipments remain near a standstill. Russia/Ukraine shipments are down more than 50% in August, while concerns are growing that continued disruptions could lead to a pullback in Black Sea wheat acreage.
• Soybean oil futures bounced on news that the Trump administration is considering raising 2027 RVO obligations by as much as 500 million gallons to offset small refinery exemptions. The administration’s broader goal is to lower gasoline prices ahead of the November midterm elections. I think we ultimately see this happen, which should provide support to the soybean crush industry.
• Midwest weather forecasts are calling for limited rainfall and above-normal temperatures to begin September, which should push crops toward maturity. Harvest has already started in parts of Missouri and Illinois, with early corn moistures coming in drier than anticipated in some areas. This forecast will likely keep a lid on early-harvest premiums, especially for corn. There are still some attractive soybean cash inverses out there, particularly in the western belt.