The grain trade softens as it awaits Chinese confirmation of an Ag package.
May 20, 2026
Grain markets were weaker this morning, with wheat unable to hold an early 14-cent rally and the broader complex finishing the session on softer footing.
The market is still struggling with uncertainty around China. Without confirmation from Chinese officials that an agricultural trade agreement is finalized, and with no meaningful tariff reductions yet, traders are left trying to price a deal that may or may not translate into near-term demand. Normally, rapid planting progress and mostly favorable Midwest weather would lean bearish for grains this time of year. The difference now is the possibility that Chinese buying could expand into June, which is keeping some caution in the market when it comes to selling.
The report calendar is light. Weekly ethanol production will be released today, followed by export sales tomorrow, but neither is expected to carry the weight of a major USDA report. Positioning is also becoming a factor as traders prepare for the Memorial Day holiday, with markets closed next Monday. That could encourage more book-squaring as the week winds down.
