August 27, 2026

Mid-Co Morning Comments:

• Grain markets are lower this morning with corn and soybeans a few cents weaker. Wheat is slightly higher after yesterday’s limit-up move. The estimated corn fund position is now roughly 399k contracts long, just 30k shy of the all-time record. Corn spreads continue to firm with CZ/CH now trading at -13 ¾ .
• Escalating tensions in the Black Sea sparked yesterday’s sharp move in wheat. Russia launched another round of attacks on Ukraine overnight, including strikes on Kyiv and multiple shipping ports. I don’t expect wheat to return to the levels seen in ’22–’23 when the war initially began, but some war premium is certainly being added back into the market. Despite the rally, wheat spreads haven’t shifted much, with WU/WZ still near -18 and WZ/WH around -15.
• Export sales this morning showed 42 million bushels of corn sold for the ’26–’27 marketing year, along with a whopping 91.1 million bushels of soybeans. Total old crop corn commitments now stand at 3.5 billion bushels, above USDA’s 3.4 billion bushel target.
• Basis remains defensive for the most part on corn and soybeans following the run-up in futures. Soybean processor moves were mixed yesterday, with Incobrasa Gilman backing bids off a dime while Cargill Kansas City firmed 30c to +100X. Basis could come under additional pressure this week with a good amount of producer pricing taking place, especially in areas where new crop drop charges kick in at the end of the month.
• Reminder: September longs will be reported by the end of tomorrow’s session. Please reach out with any questions regarding Sep positions. Have a great day!