July 22, 2026

Mid-Co Morning Comments:
 

• Grain markets are stronger again this morning, with wheat futures sharply higher. Limited rainfall forecasts across the Corn Belt and rising global energy prices have been the primary catalysts behind this week’s rally. Spreads are mixed, with CU/CZ widening to -23¼ while new crop corn spreads are slightly firmer.
• Basis has been relatively quiet this week as the rally has encouraged additional producer selling. Most soybean processors are still bidding against the SQ with first notice day for August futures approaching and the SQ/SX spread remaining volatile. Crush margins have been stronger with the higher energy prices and are now around $3.19/bu. Corn basis has seen little change this week, with only minimal adjustments reported yesterday.
• Escalating Russia-Ukraine tensions continue to disrupt Black Sea grain exports. Russian attacks on Ukrainian port infrastructure have intensified, while Ukrainian drone strikes have reportedly disrupted traffic through the Sea of Azov, a key outlet for Russian grain exports. Meanwhile, renewed concerns surrounding the Strait of Hormuz have pushed energy prices higher. The combination of weather uncertainty and geopolitical risk has encouraged fund managers to add length in corn and other commodity markets.
• Weather forecasts continue to call for limited precipitation across much of the Corn Belt over the next two weeks, with above-normal temperatures expected through next week and into early August. The greatest areas of concern remain the Upper Midwest and Northern Plains, particularly North Dakota, South Dakota, and Minnesota.