August 26, 2026

Mid-Co Morning Comments:

• Grain markets are in the green once again, with CZ26 scoring another fresh high of $5.30 overnight. Wheat futures are double digits higher. Spreads are mixed, with soybean spreads firmer while corn spreads are variable.
• Reports indicate China will be excluded from U.S. sanctions on Iran to allow for a shift in energy suppliers away from Iran. With the Trump/Xi summit less than a month away, some good-faith gestures will likely be needed to set the stage for a productive meeting. Sources indicate soybeans and other agricultural goods are expected to be part of the discussions.
• Crush margins have come under pressure this week as higher soybean futures and lower soybean oil prices weigh on margins. September (UUX) board crush peaked near $3.80/bu in early June and is currently trading around $2.03/bu. A move below $2.00/bu would signal additional weakness. A few crush plants backed off bids by 5–10 cents yesterday, including Incobrasa in Gilman.
• Basis was mostly quiet yesterday. ADM Decatur and Bartlett Jacksonville are reportedly running drying specials and taking in a small amount of wet corn from larger producers in the area. I don’t expect drying specials to be widespread this year given the lack of an inverse, especially on the rail. A good chunk of corn should be ready around Labor Day, and extended September forecasts are currently pointing toward warmer and drier conditions.