Is 2026 Set to Improve the Grain Market? Early Indications Favor Corn and …

The grain markets experienced great volatility in 2025, but there are promising signs for the New Year 2026, according to Karl Setzer from Consus Ag Consulting. Setzer believes that external market factors will play a significant role in shaping the grain markets in 2026, with the performance of gold and silver having a particularly strong influence. He notes that these commodities, alongside corn, soybeans, and wheat, have been grouped together by investors, and when they sell off precious metals like gold and silver, corn and soybeans tend to decline in value. However, Setzer suggests that a resurgence in the buying of gold and silver would not be unexpected and could positively impact corn and soybean markets.

Setzer also highlights the impact of the U.S. dollar’s downward trend on the 2026 markets. The U.S. dollar is expected to experience its worst year since 2017, potentially starting the year with some weakness. A weaker dollar can be beneficial for U.S. commodities, especially in terms of export sales, as it can make American products more competitive in international markets.

Looking at the global landscape, Setzer mentions the upcoming corn and soybean harvests in South America, which are critical to U.S. grain prices. Brazil is predicted to produce another sizable soybean crop, but concerns arise regarding the weather conditions in Argentina. As December progressed, unfavorable weather patterns emerged in Argentina, posing a threat to crop production. Setzer notes that the developing La Niña weather phenomenon is closely monitored due to its potential to cause significant crop losses, as some areas have already experienced extended periods without meaningful rainfall.

Setzer’s insights suggest that 2026 could offer opportunities for corn and soybeans in the grain markets. Factors such as external market performance, including the behavior of gold and silver, the weakening U.S. dollar, and South American harvests, all have the potential to influence grain prices. Keeping a close watch on these dynamics will be crucial for farmers and investors in navigating the grain markets in the coming year.