Brazil's rapidly expanding corn-based ethanol industry is increasing its domestic demand for corn. This strengthens local prices and raises the cost of Brazilian corn exports, creating a significant price advantage for US corn in the international market.
Improved US-China trade relations are boosting Chinese purchases of American sorghum. This increased demand could make sorghum a more profitable crop for US farmers, potentially leading them to allocate acreage away from other crops like cotton during the 2026 planting season.
A pending Supreme Court hearing on the IEPA repeal could eliminate or adjust long-standing high tariffs on imported goods like cocoa, coffee, and palm oil. Such a ruling would offer significant cost relief to domestic food producers and could dramatically alter the pricing landscape for these commodities.
Despite reduced tariffs, China is unlikely to significantly increase US agricultural product purchases soon. Brazil's current soybean crop is priced much more competitively, making it the preferred origin. The real shift towards US products is expected in the 2026-27 season when pricing becomes more favorable.