Ludlow Coop Elevator Company

15 hours ago

02.19.26 MIDCO AFTERNOON COMMENTS

🌽 Corn Market Update
Corn futures were quiet for a second consecutive day on Thursday, with values closing on either side of unchanged in not a whole lot of volume. This morning's USDA numbers weren't necessarily expected to move markets a whole lot, but amid a lack of fresh news otherwise, traders were hopeful there was going to be something to chew on in the data. From here, it will now be the March perspective plantings report in another month or so that gives the next update on this topic, with it being crop prospects and weather in South America that drives things in the meantime.

🌱 Soybean Market Update
Soybean futures closed higher on Thursday, but saw better gains in the spot than months than in the back as new crop futures were under more pressure via new crop balance sheets that weren't overly bullish. The bump in bean oil use for biodiesel is somewhat surprising given pace through the first quarter of the marketing year is well behind last year, but like with the discussion on RVOs and that whole situation, until some sort of legislation is finalized, an argument can be made for really any outcome whether bullish or bearish. South America's giant crop is going to have an impact on exports, which is why there has been such a high level of focus on domestic demand prospects and more specifically, biofuels.

🌾 Wheat Market Update
Wheat futures just keep chugging along, with the market in Chicago finishing higher on Thursday and at its best level in some three months as speculative buying and short covering continue to drive price action. Like we've talked about all week, there really isn't a specific fundamental reason for the buying. Yes, there are concerns over cold weather in the Black Sea region and yes there are concerns over dryness in the US wheat belt, but wheat crops are made in April and May and its just impossible to say right now whether there will or won't be crop issues based on current weather conditions. ... See MoreSee Less

Ludlow Coop Elevator Company

22 hours ago

2.19.26 MIDCO MORNING COMMENTS

Commodities are mixed this morning. Wheat and soyoil futures have pushed to new highs for their moves this morning. USDA’s Outlook Conference is underway. Data this morning shows 2026 U.S. corn planted acres down slightly from LY at 94.0 mln. This was below average trade expectations. Bean acres came in at 85.0 mln. Corn yield was forecast at 183 bpa, w/ending stocks at 1.837 bln. bu. / soybean yield at 53bpa, w/ending stocks at 355 mln. Minutes from the Fed's January FOMC meeting showed generally broad agreement in holding rates steady in the 3.5 to 3.75% range, with only a couple members favoring a ¼ point cut. There’s talk a major U.S. arms sales package for Taiwan is on hold sparked by pressure from China’s Pres Xi and concerns w/in the Trump admin that approving the deal could disrupt Trump’s planned Beijing visit. The EPA is expected to send the 2026 biofuel blending quotas to the White House this week. The U.S. Supreme Court has scheduled Feb. 20th for opinions, raising the possibility of a ruling on tariffs. Additional opinion days are set for Feb. 24th & 25th. Much of Brazil returned from its Carnival holiday yesterday while China continues to celebrate their Lunar New Year, keeping bean demand news slow this week. Brazilian FOB soybean offerings are running roughly 75¢ to $1.10/bu. below the U.S. Argentina has been in the news as a maritime workers' labor reform strike has halted grain shipments for 48-hrs. Sep/Oct pkg CIF beans changed hands at +88X on Wednesday and Mar CIF corn at +100H. Export traders indicate new U.S. corn demand has been moderate, as buyers price check against Argy, though there were reports Egypt was shopping for March corn and Japan for April corn on Wednesday. Barge freight traders report some spot needs on the IL, OH, and Lower Miss. River conditions are said to be improving, but logistics remain slow. The LaGrange lock remains a bottleneck w/approx. 29 boats waiting to lock through. More water is resulting in increased drafts STL to Cairo and Cairo to the Gulf. River corn and bean basis was steady nearby and mixed in the deferreds yesterday. Processor corn basis was mostly unchanged, other than Columbus, NE weakening 2¢ nearby and Decatur, IL backing off 2¢ for FH Mar. UP NE Group 3 rail corn firmed 2¢ for Mar and a penny for April. Feb/Mar crusher bean basis was steady mid-week on both sides of the Miss. Today’s weekly EIA report is expected to show an uptick in ethanol production from the previous week as well as ethanol stockpiles. Weekly export sales are delayed until tomorrow morning, due to Monday’s holiday. March options expire tomorrow, so please check your positions. ... See MoreSee Less