August 3, 2026

Mexican Cattle Imports to Resume Amid Screwworm Concerns

USDA plans to resume imports of Mexican cattle on Aug. 24, a move welcomed by feedlots and meat processors but viewed cautiously by some ranchers concerned about the spread of New World screwworm. USDA suspended imports earlier this year after the livestock pest was detected in southern Mexico. Since then, the agency has increased surveillance, expanded sterile-fly releases and strengthened animal inspection protocols. Industry groups supporting the reopening say additional cattle supplies are needed as the U.S. herd remains at its smallest level in decades, contributing to record-high cattle and beef prices. Others argue reopening the border too soon could increase the risk of screwworm entering the United States. USDA officials say imports will resume only through approved facilities meeting enhanced health requirements and will continue to monitor conditions before expanding access. Reuters and USDA said additional biosecurity measures will remain in place as trade resumes. Screwworm outbreaks have been confirmed in Texas and New Mexico.

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Senate Farm Bill Draft Expected to Add Year-Round E15 Provision

Senate negotiators are expected to add language authorizing year-round nationwide sales of E15 gasoline to an updated farm bill draft, marking a shift from an earlier proposal that omitted the measure despite strong support from corn growers and the ethanol industry. The revised text would include the long-sought provision as lawmakers continue negotiations on a new five-year farm bill. Supporters have argued that permanent approval of E15, a gasoline blend containing 15% ethanol, would provide certainty for fuel retailers, boost corn demand and eliminate the need for annual emergency waivers from the Environmental Protection Agency. The House passed standalone legislation authorizing year-round E15 sales in May, but the proposal has stalled in the Senate, where supporters have sought to attach it to broader legislation. Refining interests have opposed the measure, citing concerns over compliance costs and fuel distribution requirements, according to Reuters. The inclusion of E15 in the Senate farm bill could improve the measure’s prospects by pairing it with broader agricultural priorities, though the legislation still faces negotiations before reaching the Senate floor. Congress must act before current farm bill authorities expire later this year. 

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Favorable Weather Pressures Corn and Soybean Futures

Corn and soybean futures declined Thursday as traders responded to forecasts calling for timely rainfall and moderate temperatures across much of the Midwest during key crop development stages. Market analysts said improving weather has strengthened expectations for large U.S. harvests, weighing on grain prices despite steady export demand. Wheat futures posted modest gains at times, supported by continued uncertainty surrounding Black Sea grain shipments and global supply logistics, though abundant worldwide inventories limited stronger advances. Traders are also positioning ahead of USDA’s August Crop Production and World Agricultural Supply and Demand Estimates reports, which are expected to provide updated yield forecasts and production estimates. Analysts surveyed by Reuters anticipate generally favorable crop conditions will translate into strong corn and soybean production if weather remains cooperative through August. CME Group market data showed grains remained volatile as investors balanced weather forecasts with global demand and geopolitical developments.

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Brazil Tariff Dispute Continues to Shape U.S. Farm Trade

Agricultural organizations continue monitoring the Trump administration’s tariffs on selected Brazilian imports as debate persists over their effect on U.S. farm exports and international trade. Ethanol producers and several commodity groups argue the tariffs respond to longstanding market barriers that have limited American access to Brazil’s fuel and agricultural markets. Supporters contend the policy could improve opportunities for U.S. ethanol and other agricultural exports by encouraging more balanced trade. Critics, however, warn that additional tariffs could invite retaliation or complicate commercial relationships between two of the world’s largest agricultural producers. Brazil is a major competitor with the United States in exports of soybeans, corn, beef and poultry, making trade policy especially significant for global commodity markets. Trade analysts told Reuters and industry publications that producers are closely watching negotiations for signs that both countries may seek a broader agreement to reduce trade tensions while protecting agricultural interests.

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Lamb Import Investigation Draws Broad Support From Sheep Producers

Sheep producers are rallying behind a federal investigation into whether rising lamb imports have seriously harmed the U.S. sheep industry. The U.S. International Trade Commission launched the safeguard investigation in July at the request of the Office of the U.S. Trade Representative after a petition from the American Sheep Industry Association. The inquiry will determine whether imported fresh, chilled and frozen lamb has caused or threatens serious injury to domestic producers, potentially leading to temporary trade measures such as tariffs or quotas. Producer organizations in states including Wyoming, Colorado, Utah and Idaho say imports have reduced market share and pressured prices, making it difficult for domestic operations to remain profitable. The American Sheep Industry Association welcomed the investigation, while exporting countries including Australia have pledged to participate in the proceedings. The USITC expects to issue its injury determination by November, with a final report to the president due in January 2027.

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US Grains Council Meets in Wisconsin to Focus on Trade, Market Growth

The U.S. Grains Council convened its 66th Annual Board of Delegates meeting last week with a focus on expanding export markets, strengthening global supply chains and shaping future trade priorities for U.S. grain and biofuels producers. The three-day meeting brought together council members, commodity organizations and industry leaders to discuss international demand for U.S. corn, sorghum, barley and related products. U.S. Grains Council President and CEO Ryan LeGrand said the organization remains committed to developing markets, enabling trade and supporting customers worldwide. The conference included discussions on trade policy, emerging export opportunities and supply chain issues. A panel featuring U.S. Trade Representative Ambassador Julie Callahan and U.S. Department of Agriculture Under Secretary Luke Lindberg examined federal trade priorities, while Wisconsin Agriculture Secretary Randy Romanski highlighted the state’s agricultural sector. Advisory teams and commodity sectors presented recommendations before delegates elected new board members and established organizational priorities during Friday’s closing session.

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