Corn | Holding Firm

Corn remains relatively strong heading into harvest. December corn was trading around $5.34 per bushel on September 16, roughly where it stood in late August. The market continues to balance strong recent price performance against expectations for substantial U.S. production and the progress of the harvest.

Soybeans | Higher

Soybeans have continued to move higher since late August. November futures were around $13.20 per bushel on September 16, compared with approximately $12.60 three weeks ago. Export demand, including renewed Chinese buying, has provided support.

Wheat | Higher

Wheat remains one of the stronger grain markets. Chicago wheat was around $7.31 per bushel on September 16, compared with roughly $6.80 in late August. CME Group reported Chicago wheat among the strongest agricultural commodities in August, with a monthly gain of nearly 18%. Global supply concerns and export developments continue to influence the market.

Cattle | Strong but Under Pressure

Cattle prices remain historically high, but the market has softened from earlier 2026 levels. Live cattle were around $220 per hundredweight on September 16, while CME Group reported live cattle down 6.4% during August. Tight supplies continue to support prices, but producers are watching demand and import policy closely.

Diesel | Rising Sharply

Diesel is the biggest cost story this week. The U.S. average reached $6.285 per gallon for the week of September 14, up from $5.652 on August 24 and $5.967 the previous week. Midwest diesel reached $6.250 per gallon. The increase is particularly significant heading into harvest, adding pressure to farm operating costs, transportation and manufacturing.

Fertilizer | Mixed

Fertilizer prices have shown some movement since the August update, although the overall picture remains mixed. Prices remain an important consideration as producers begin making decisions for the 2027 crop. The market continues to be influenced by natural gas costs, global supply and seasonal demand.

Financing | New Headwind

The Federal Reserve raised the federal funds target range by 0.25 percentage point on September 16, to 3.75%鈥�4.00%. The Fed said economic activity is expanding at a solid pace but noted that inflation remains elevated. For equipment manufacturers and dealers, borrowing costs remain an important consideration for customers evaluating large equipment purchases and inventory financing.

Tariffs & Manufacturing Costs | Still Watching

Trade policy remains an important consideration for manufacturers, particularly those purchasing steel, aluminum, electronics and other imported components. While there has not been a major new development this week that warrants a full update, tariffs and sourcing costs remain factors manufacturers should continue to monitor.

婷婷激情五月天 Market | Uneven

The broader equipment market continues to show a split between large agricultural equipment and smaller equipment categories. Deere’s most recent results showed continued pressure in large agriculture while Small Ag & Turf has been more resilient. Industry data also continues to point toward tighter equipment demand following the downturn of the past several years.

Bottom Line

The biggest changes this week are higher soybean and wheat prices, sharply higher diesel costs and the Federal Reserve’s rate increase. Corn remains relatively steady, while cattle prices have softened from earlier highs. For shortline manufacturers, the combination of stronger commodity prices and significantly higher fuel costs creates a mixed environment heading into harvest, while financing costs remain an important factor in equipment purchasing decisions.

Sources: USDA, USDA-NASS, CME Group, U.S. Energy Information Administration, Federal Reserve, Deere & Company, Reuters and industry market reports.

The following market indicators provide a quick overview of economic and commodity trends influencing agriculture, equipment purchasing decisions, and manufacturing costs across the shortline industry.

Corn | Higher

Corn has made a significant move higher this week, with December futures reaching about $5.34 per bushel after a sharp rally Wednesday. Concerns about crop supplies, strong demand and broader strength across grain markets are supporting prices.

Soybeans | Higher

Soybeans have also moved sharply higher, with November futures reaching about $12.60 per bushel. Strong domestic crush demand and continued Chinese buying are providing support, despite expectations for a record U.S. soybean crop this fall.

Wheat | Strongly Higher

Wheat is one of the biggest stories this week. Chicago wheat futures jumped sharply and reached a three-year high as concerns about disruptions to Black Sea exports increased. Damage and shipping disruptions at Russian and Ukrainian ports are raising questions about global grain supplies.

Cattle | Strong but Volatile

Cattle markets remain historically strong, but prices have come under pressure following the administration’s plan to temporarily increase U.S. beef imports. Tight domestic supplies continue to provide underlying support, keeping cattle economics relatively favorable for livestock producers.

Steel | Elevated

Steel prices remain elevated, with U.S. HRC pricing around $1,170鈥�$1,200 per ton. Domestic supply, tariffs and trade developments continue to influence the market. For equipment manufacturers, steel remains an important cost consideration as companies evaluate pricing, inventory and production decisions.

Aluminum | Firm

Aluminum remains elevated, with LME aluminum around $3,225 per metric ton this week. Prices have received support from supply concerns and declining inventories, keeping aluminum costs in focus for manufacturers using the metal in trailers, tanks, grain-handling equipment and lightweight components.

Diesel | Rising

Diesel continues to be a major cost pressure heading into harvest. The U.S. average reached $5.652 per gallon for the week of August 24, up nearly 20 cents from the previous week and about $1.94 higher than a year ago. Midwest diesel averaged $5.636 per gallon.

Fertilizer | Mixed

Fertilizer prices remain elevated but have shown some mixed movement. DTN reported that five major fertilizers were lower compared with the previous month while three were slightly higher. Urea averaged $678 per ton, while MAP averaged about $960 per ton.

Electronics & Precision Ag | Growing

Precision agriculture continues to gain traction despite tight farm margins. A recent CNH survey found that 89% of farmers surveyed use auto-guidance technology, while 54% plan to invest in additional precision technology within the next two years. Lower input costs, greater efficiency and improved yields are among the primary reasons farmers are investing.

婷婷激情五月天 Market | Cautiously Improving

Deere’s latest results continue to provide a mixed picture for the equipment industry. Production & Precision Agriculture sales declined 6%, reflecting continued weakness in large agricultural equipment. However, Small Ag & Turf sales increased 12%, and Deere expects U.S. and Canadian large-ag equipment demand to remain down 15鈥�20% for 2026 while forecasting Small Ag & Turf to be flat to up 5%.

Financing | Still a Headwind

Financing costs remain an important consideration for producers evaluating equipment purchases. With large-equipment demand still under pressure, manufacturers may continue to see opportunities in replacement parts, attachments, retrofit equipment and upgrades that allow producers to extend the life of existing machinery.

Tariffs & Manufacturing Costs | Watching Closely

Trade policy remains an important risk for manufacturers. Recent U.S.-Canada trade tensions have added uncertainty around steel, aluminum and other manufactured goods, while tariffs continue to influence sourcing decisions and material costs. Manufacturers should continue watching developments that could affect imported components and raw materials.

OEM Outlook | Cautiously Optimistic

The equipment market remains uneven, but there are reasons for cautious optimism. Large agricultural equipment continues to face pressure, while small ag, turf, livestock-related equipment, technology and replacement/retrofit markets offer areas of opportunity. Deere’s latest results reinforce the possibility that 2026 may be a bottoming year for the broader ag equipment cycle, while precision-ag adoption suggests technology investments may remain a source of growth.

Sources: USDA, USDA-NASS, CME Group, U.S. Energy Information Administration, Federal Reserve, Reuters, Deere & Company, CNH Industrial and industry market reports.

The following market indicators provide a quick overview of economic and commodity trends influencing agriculture, equipment purchasing decisions, and manufacturing costs across the shortline industry.

Corn | Higher
Corn futures have moved higher in August, with recent gains supported by strong ethanol demand and domestic biofuel activity. The market remains focused on crop conditions, yield potential and the approaching harvest.

Soybeans | Higher
Soybean futures have also posted gains this month, supported by strong domestic crush and biofuel demand. Export demand and U.S.-China trade developments remain important market drivers as harvest approaches.

Wheat | Higher
Wheat prices have strengthened in August, with Chicago and Kansas City wheat among the stronger-performing grain markets. Tightening stocks and drought concerns in some growing regions are providing underlying support.

Cattle | Strong
Cattle prices remain historically strong, continuing to provide relatively favorable economics for livestock producers. Strong beef and dairy markets are a positive for manufacturers serving livestock, hay, forage and feeding operations.

Steel | Higher
Steel prices remain elevated, creating continued pressure on equipment manufacturers. Domestic steel costs, tariffs and supply conditions remain important factors as manufacturers manage material costs and pricing decisions.

Aluminum | Elevated
Aluminum prices remain elevated, keeping material costs in focus for manufacturers using aluminum in trailers, grain-handling equipment, tanks and lightweight components. Global supply and trade policy continue to influence the market.

Diesel | Rising
Diesel prices have climbed sharply heading into harvest. Mid-August prices have reached decade-high levels, adding pressure to farm operating costs at an especially important time of year. Fuel costs also affect transportation, freight and equipment delivery expenses.

Fertilizer | Higher
Fertilizer prices remain elevated heading into the fall application season. Higher nitrogen and other input costs are putting additional pressure on producer margins and could make farmers more cautious about major capital purchases.

Hydraulics & Components | Stable
Availability of hydraulic cylinders, pumps, valves and related components remains considerably better than during the supply-chain disruptions of recent years. Manufacturers should continue watching freight and commodity-related cost increases that can affect component pricing.

Electronics & Precision Ag | Growing
Supply conditions for controllers, sensors, displays and other precision-ag components remain much improved. At the same time, adoption of technology, automation and precision-ag solutions continues to create opportunities for manufacturers looking to add value without requiring a complete equipment replacement.

婷婷激情五月天 Market | Cautiously Improving
The latest results from Deere provide a mixed but encouraging signal for the equipment industry. Deere’s Production & Precision Agriculture sales declined 6%, reflecting continued weakness in large agricultural equipment. However, Small Ag & Turf sales increased 12%, while the company pointed to improving early orders, used-equipment inventories and technology adoption as signs that the agricultural downturn may be approaching a bottom. Deere also raised the lower end of its 2026 earnings outlook.

Financing | Still a Headwind
Borrowing costs remain an important factor in equipment purchasing decisions. Higher financing costs continue to make large capital purchases more difficult for producers, reinforcing opportunities for replacement parts, attachments, retrofit equipment and upgrades that extend the life of existing machinery.

Tariffs & Manufacturing Costs | Watching Closely
Trade policy remains a key issue for equipment manufacturers. Tariffs on certain agricultural equipment were reduced to 15% earlier this summer, but manufacturers continue to face uncertainty around imported components and raw materials. Steel and aluminum costs remain an additional source of pressure.

OEM Outlook | Cautiously Optimistic
The shortline equipment market continues to face a cautious environment, particularly for large capital purchases. However, there are some encouraging signs heading into the fall selling season. Strong livestock economics, growing interest in technology, continued demand for replacement and retrofit equipment, and indications that the broader agricultural equipment downturn may be nearing a bottom provide opportunities for manufacturers. At the same time, elevated diesel, steel, aluminum and fertilizer costs continue to pressure farm profitability and manufacturing margins. Deere’s latest results reinforce the idea that 2026 may represent a bottoming year for the ag equipment cycle, even if a broad recovery is still ahead.

Sources: USDA, USDA-NASS, CME Group, U.S. Energy Information Administration, Federal Reserve, Reuters and industry market reports.