May 18, 2026

Mid-Co Morning Comments:
 

• Grain markets are sharply higher this morning after the White House released a fact sheet stating that “China will purchase at least $17 billion per year of U.S. agricultural products in 2026 (prorated), 2027, and 2028, in addition to the soybean purchase commitments made in October 2025.” Spreads are firmer across the board on the news, with traders reacting to the potential for a major boost in export demand. CN/CU has tightened back into – 6 ¼ while SN/SX is at +8.
• The fact sheet also noted that both countries agree Iran should not possess a nuclear weapon and that the Strait of Hormuz should be reopened. Chinese officials have yet to fully confirm all the details released by the White House, but did describe the Trump/Xi summit as constructive and positive for U.S.-China relations.
• Soybean crush margins continue to rip higher, helped by stronger soybean meal prices over the past week as the European Union shows increased interest in U.S. soymeal. Nearby crush margins are around $3.92/bushel and up another 21 cents today. Ethanol margins also remain strong, with Central Iowa plants estimated near 64 cents per gallon.
• Rain is moving across much of the Corn Belt this morning and should be welcomed in most areas. Current 10-day forecasts call for heavier precipitation totals across Missouri, Iowa, and Southern Illinois. Temperatures are expected to stay near seasonal norms, with highs generally in the upper 70s to lower 80s.