September 28, 2026

California Clears Way for E15 Gasoline Sales

California has cleared the way for sales of E15 gasoline, opening the nation’s largest auto market to fuel containing 15% ethanol. Gov. Gavin Newsom signed Senate Bill 795, removing the final regulatory barrier to E15 sales. California had been the only state where the higher-ethanol blend could not be sold, according to Reuters. The change could provide a significant new market for U.S. corn and ethanol producers. Aemetis CEO Eric McAfee estimated California could generate about 650 million gallons of additional ethanol demand annually. California officials say E15 could also help reduce gasoline costs. A study by economists at the University of California, Berkeley, and U.S. Naval Academy estimated E15 could reduce prices by as much as 20 cents per gallon and save California motorists up to $2.7 billion annually. Congress is separately considering legislation allowing year-round E15 sales nationwide.

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Tighter Canadian Supplies Push Oat Futures Above $4

Oat futures have climbed nearly $1 per bushel during the third quarter as shrinking Canadian production and tight U.S. supplies support prices. Farm Progress reports oat futures recently broke above $4 per bushel for the first time in two years. The rally comes as Canada, a key supplier to the United States, faces a sharply smaller crop. Statistics Canada estimates 2026 oat production at about 3 million metric tons, down 22.7% from last year. Harvested acreage is projected to fall nearly 20%, while yields are expected to decline 3.5%. The United States remains a net oat importer. Farm Progress says USDA projects U.S. production at 68 million bushels, compared with imports of 72 million bushels and domestic consumption of 138 million bushels. Ending stocks are estimated at 32 million bushels. Tighter North American supplies could continue supporting prices into 2027.

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U.S.-China Summit Leaves Key Agricultural Trade Issues Unresolved

U.S. farmers are awaiting more details on agricultural trade after President Donald Trump and Chinese President Xi Jinping concluded talks Thursday without announcing a broader trade agreement. Reuters reports the countries extended their existing trade truce by two months, giving negotiators additional time to address tariffs, agricultural purchases and other disputes. Treasury Secretary Scott Bessent said China is meeting an earlier commitment to purchase 25 million metric tons of U.S. soybeans annually but is behind on a pledge to buy $17 billion in other U.S. agricultural products. China has yet to purchase U.S. corn for the current marketing year, while sorghum purchases have lagged expectations, according to Reuters. Farm groups are seeking stronger purchase commitments and reduced Chinese tariffs on American agricultural products. The trade truce now runs through Jan. 10 as negotiations toward a broader agreement continue.

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Rain-Delayed Soybean Harvest Leaves Midwest Processors Scrambling for Supplies

Persistent rain across parts of the Midwest is delaying the soybean harvest, tightening supplies and forcing processors to offer large premiums for immediate deliveries. Reuters reports some soybean crushing plants have reduced production as old-crop supplies dwindle and new-crop beans remain unavailable. USDA projects processors will crush a record 2.78 billion bushels during the current marketing year. Cargill offered $1 per bushel above November futures for immediate soybean deliveries to its Sioux City, Iowa, facility Thursday, producing a cash price of $14.17½ per bushel. Other processors in Iowa and Minnesota also offered short-term premiums. Wet fields have prevented many farmers from harvesting despite attractive prices. Excessive rainfall has also slowed crop dry-down and maturity in portions of the Midwest. The shortage has affected soymeal markets, with October futures reaching a contract high Thursday as processors struggled to secure enough soybeans.

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Cattle Futures Fall as Meatpacking Disruptions Slow U.S. Slaughter

Cattle futures declined Thursday as workforce disruptions at meatpacking plants contributed to a sharp drop in U.S. cattle slaughter. The U.S. Department of Agriculture estimated Thursday’s slaughter at 90,000 head, down from 107,000 a week earlier, Reuters reported. Industry representatives said increased immigration enforcement has kept some workers away from beef plants in Dodge City and Liberal, Kansas, delaying cattle shipments to processing facilities. The Kansas Livestock Association, Oklahoma Cattlemen’s Association and Texas Cattle Feeders Association said enforcement activity was having a significant effect on agricultural workers and warned that sudden workforce disruptions could affect animal welfare and beef supply-chain operations. Chicago Mercantile Exchange December live cattle futures fell 1.25 cents to $2.221 per pound Thursday. October feeder cattle dropped 1.575 cents to $3.3175 per pound. Industry officials said processing slowdowns could create cattle backlogs if labor disruptions continue.

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Foreign Interests Hold 46.3 Million Acres of U.S. Agricultural Land

Foreign interests held 46.3 million acres of U.S. agricultural land at the end of 2024, representing about 3.6% of privately held agricultural land nationwide, according to USDA data analyzed by University of Illinois researchers. Farmdoc Daily reports the total includes more than traditional farmland ownership. Federal reporting requirements also cover certain long-term leases, including arrangements commonly used for wind and solar energy projects. Nearly half of reported foreign-held acreage is forestland, while cropland accounts for 29% and pasture and other agricultural land represent about 22%, USDA reported. Canadian interests account for the largest share of foreign-held agricultural acreage, driven largely by forestland holdings. Farmdoc researchers noted that foreign holdings have increased in recent years but remain a relatively small portion of privately owned U.S. agricultural land. The University of Illinois’ TIAA Center for Farmland Research has developed an interactive county-level map allowing users to examine foreign holdings by country, location and land use.

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