August 31, 2026

Mid-Co Morning Comments:
 

• Grain markets are lower this morning after initially opening higher overnight. Sounds like a broken record, but CZ26 made another fresh high of $5.42 while SX26 pushed to a new high of $12.94 ½. We could see some selling pressure today with a decent amount of old crop storage/DP getting priced ahead of new crop charges. Additionally, Indiana requires all old crop grain to be sold on DP/Storage by the end of August which represents the end of the crop year.
• The U.S. struck Iran over the weekend, marking the first U.S. offensive action in over a month and signaling there may be no near-term end to the conflict. Crude oil has jumped roughly $3/barrel this morning with October WTI back above $86/barrel. Russia and Ukraine also continue to exchange strikes on shipping ports. Reports indicate Ukraine has purchased a large volume of grain bags and temporary storage to keep grain away from ports in the interim.
• New crop corn spreads have leveled off after climbing to contract highs. CZ/CH has traded just 570 contracts at -15 so far this session with roughly 16,000 contracts still bid at that level. Soybean spreads are under pressure with SX/SF making a low of -15 ½ overnight. Roughly 11,000 contracts are currently bid at -16 for SX/SF.
• Weather forecasts point to a hot and dry start to September with highs in the 90s this week. That should push the crop along, and I’m hearing harvest could really get going south of Springfield, IL this week. Extended forecasts turn more seasonal for the second half of September with better precipitation chances.
• Market Drivers This Week: Russia/Ukraine and Iran headlines, private crop production estimates from StoneX, S&P and AgResource, and early harvest activity/yield reports. Also watch for September WASDE estimates to begin circulating toward the end of the week.