West Central Ag Grain Comments 08/03/26 10:02:22 AM
08/03/26
- Grain markets are weaker this morning, though off overnight lows. Spreads are mostly quiet this morning with the CU/CZ trading a tight range of -23 to -23 ½ overnight. Crude oil futures are sharply lower with some positive headlines out of the middle east over the weekend.
- Rainfall totals varied over the weekend. The radar looked odd on Saturday with a swirling pattern over central IL and a system moving east to west. I had about 3.1” of rain at my house in town Normal while the farm totals were all over the place. Seemed like the further south you got, the less rain. The latest NOAA 7-Day forecast looks to bring some additional rain to Iowa and the northern half of Illinois over the next week. These forecasts will be a big factor in driving markets this week.
- President Trump indicated that the US was prepared to launch a major strike on Iran over the weekend but pause that activity to allow for peace negations. Talks of fully reopening the strait of Hormuz are allegedly ongoing and the crude market is down over $5/barrel this morning. Feels like the corn market has decoupled from crude futures, but soybean oil/crush margins will continue to react on any major news out of the middle east.
- China purchased around 14 cargos of soybeans on Friday and over the weekend, per reports. Private estimates believe that China has secured around 4 MMT of US soybeans for the ‘26/’27 marketing year, which is around 16% of the 25 MMT pledge. Look for some additional flash sales this week and some potential additional appetite from China with soybean futures lower.
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