West Central Ag Grain Comments 08/13/26 9:40:29 AM
08/13/26
- Grain markets are mostly lower this morning following yesterday’s bullish WASDE and Crop Production reports. Spreads are mostly steady to begin the session, with CU/CZ running into some resistance at -24. Crude oil markets are lower with Sep WTI trading around $81/barrel.
- The August WASDE sent corn sharply higher on a lower-than-expected yield and a new-crop stocks-to-use ratio just above 10%. Funds were aggressive buyers on the report, purchasing an estimated 58,000 contracts and pushing their overall net length to roughly 227,000 contracts. USDA also printed a record combined corn and soybean acreage number at more than 183 million acres. ’26–’27 corn production is still projected above 16 billion bushels, while soybean production is up 6% from last year at 4.52 billion bushels. State-by-state numbers showed significantly less production across the western Corn Belt versus a year ago, which should be advantageous for rail corn loaders that can hit the West.
- Another round of storms is expected across Iowa and Northern Illinois today, bringing the potential for high winds and isolated tornadoes. Farther west, the High Plains could pick up some needed moisture as a system moves through eastern Colorado and into Kansas, where drought conditions have developed in some areas. Overall, the August weather forecast still leans bearish if current patterns hold.
- CONAB released its latest Brazilian production estimates this morning, holding soybean production steady at 180 MMT (6.61 billion bushels) and corn near 143 MMT (5.63 billion bushels). Weekly export sales were also released this morning, showing 16.17 million bushels of corn and 2.76 million bushels of soybeans.
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