Soybean and Grain Futures Rise Amid Demand and Weather Updates

Soybean and Grain Futures Higher on Signs of Demand

Soybean and grain futures are witnessing an uptick, fueled by strong demand for U.S. agricultural products. Recent reports from the USDA indicate that China has purchased 336,000 metric tons of U.S. soybeans slated for delivery within the current marketing year, which ends on August 31. Additionally, South Korea has announced purchases of 132,000 metric tons of U.S. corn.

This improvement comes after a period where soybean sales had lagged due to China’s hesitation to purchase U.S. supplies amid ongoing trade tensions. However, with a new agreement signed in late October, China’s market activity has returned, though concerns remain regarding competition from South American suppliers.

In contrast, corn and wheat sales have demonstrated resilience in the 2025-2026 marketing years. The USDA notes that overseas buyers have committed to purchasing 50.5 million metric tons of U.S. corn since September 1, reflecting a 30% increase year over year. Wheat purchases during the same period have surged to 20.1 million metric tons, an 18% rise compared to last year. Nonetheless, soybean sales from September 1 to date total 27.7 million metric tons, representing a 31% drop from the previous year.

Soybean futures for March delivery increased by 9¢ to $10.65 1/4 per bushel on the Chicago Board of Trade, while corn rose by 1 1/2¢ to $4.45 1/2 per bushel. Wheat futures also gained, with an increase of 3 1/4¢ to $5.13 3/4 per bushel.

Ethanol Blend Rate Reaches Record High

In another significant development, the Renewable Fuels Association (RFA) has announced that ethanol composition reached over 11% of U.S. gasoline for the first time in October. This achievement has been attributed to the growing use of E15 and flex fuels like E85. The RFA asserts that this record-high blend rate debunks the myth that a “blend wall” restricts ethanol use beyond 10% in gasoline.

In October, the 12-month ethanol blend rate recorded was 10.48%. Particularly in Iowa, E15 fuel accounted for about a quarter of gasoline sales in November. The RFA is advocating for legislative changes that would remove summer restrictions on retailers offering E15, positioning this as a crucial opportunity to benefit U.S. farmers.

Weather Forecast for Southern Plains

The National Weather Service has forecasted rain for much of the southern Plains, anticipated to occur tonight through early tomorrow morning. A quarter-inch of rain is expected in the Oklahoma and Texas panhandles, with possible localized heavy storms producing significant precipitation.

“A stray storm may become strong or severe with hail up to a quarter size,” the NWS reported, also noting that strong or severe storm potential is confined to areas along and southeast of the Kansas Turnpike. Additionally, snow is forecasted for western and central Kansas on Friday, though the extent of the snowfall remains uncertain.

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