February 4, 2026

Mid-Co Morning Comments:
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• Grain markets are lower to start the day with corn, soybeans, and wheat modestly weaker. Spreads are slightly wider with CH/CK trading at –7 ¾ and SH/SK back out to –12.
• 45Z tax credit headlines provided a modest boost yesterday. After digging through the 170-page IRS release, the takeaway is constructive but not overly bullish. Final guidance is not expected until May 28, with implementation slated for Q4 2026.
• Basis was mostly quiet yesterday. Warmer temperatures should improve river conditions, but clearing the recent backlog will take time. Terminals south of St. Louis have been paying notable premiums due to stronger barge availability, with quick ship corn bids at+47H.
• India has not signaled a halt to Russian oil purchases following yesterday’s trade deal announcement. This bears watching as the administration has threatened steeper tariffs on countries continuing business with Russia.
• South American forecasts call for beneficial rains across Argentina and Brazil over the next 7–10 days, paired with near-normal temperatures.