U.S. Grain Storage Capacity Growth has Stopped

The buildout of grain storage capacity in the U.S. has stopped. That’s according to data from Joe Janzen, an economist for the University of Illinois. He wrote on the Farmdoc Daily website that U.S. grain storage capacity grew in parallel with production from 2000 to 2019 at about 350 million bushels per year. However, that growth has stagnated since 2020 across all regions and facility types. Janzen said this stagnation, combined with continued production growth, has led to a record-high-capacity utilization rate, particularly in on-farm storage. The 2025 crop brought these tensions to a head, with December 1 on-farm utilization reaching 80 percent. What’s less clear is why investment in grain storage capacity dropped. It’s also difficult to determine if current U.S. storage capacity is sufficient for efficient operation along the grain supply chains. Janzen said, “The entire grain industry will need to consider these questions as it addresses the shifting geography of global grain production.” 

Dairy Industry Leader Testifies on USMCA Renewal

An Idaho dairy farmer testified before the Senate Finance Committee on the importance of the U.S.-Mexico-Canada Agreement to the U.S. dairy industry. Ted Vander Schaaf also talked about the improvements needed for the agreement to fully deliver for American dairy farmers. “Strong, enforceable trade agreements are critically important to the U.S. dairy industry,” he said at the hearing. “The U.S. exported about $9 billion in dairy products in 2025, including a record 559,000 metric tons of cheese last year through November.” Mexico and Canada are critical markets for U.S. dairy, purchasing $3.6 billion in American dairy products in 2024 and accounting for 44 percent of total U.S. dairy export value. USMCA remains vital to those trade flows. However, Vander Schaaf said Canada’s ongoing, blatant disregard for key USMCA obligations has undermined the agreement. “A firm basis for the agreement remains Canada upholding their end of the bargain,” Vander Schaaf added.

Cargill Down to One Working Plant in Wisconsin

Cargill announced it will be down to one working plant in Wisconsin after it shuts down a plant in a Milwaukee facility. Cargill announced that the protein processing plant in Menomonee Valley will close by the end of May, and the move will result in more than 200 people losing their jobs. Production at the plant is expected to start winding down sometime soon and will likely come to an end around the middle of April. This is the latest Cargill facility to shut down during the last 12 years. Cargill’s website now has a single location left in Wisconsin, and that’s a grain elevator in La Crosse. Local reports say that affected employees have the opportunity to apply for positions at other Cargill locations or receive a severance package. The soon-to-be-closed facility produces fresh, ground beef and value-added meat products for some of the largest grocery retailers and will be fully closed on May 31. 

Farm Journal Survey Shows Producers “Fighting for Survival”

Farm Journal’s first Ag Economists’ Monthly Monitor of 2026 shows the U.S. ag economy entered the year in a clear crop-sector recession. However, the survey also finds a deeper crisis of confidence. Economists say the downturn is cyclical and manageable through optimization, but farmers are experiencing it as a structural stress test on their operations and livelihoods. The first survey points to a continuing split in the ag economy, which is strength in livestock, particularly beef cattle, versus persistent financial stress across most of the row-crop sector. The Monthly Monitor asks respondents to compare the ag economy right now with the same time a year ago, and most retailers, producers, and economists report being somewhat worse off. “Across nearly all responses, margin pressure emerged as a dominant concern,” said Tyne Morgan of AgWeb. “While several producers talk about diversifying as a key, others responded with cutting costs to the bone, especially around capital spending.” 

Weekly Ethanol Production Rebounds After a Drop

Data from the Energy Information Administration showed that ethanol production rebounded 16 percent to 1.11 million barrels a day during the week ending on February 6. That’s equivalent to 46.62 million gallons daily. Analysis from the Renewable Fuels Association showed output was 2.6 percent higher than the same week in 2025 and almost five percent above the three-year average for the week. Still, the four-week average ethanol production rate declined 1.9 percent to 1.08 million barrels a day, equivalent to an annualized rate of 16.52 billion gallons. Ethanol stocks edged up 0.4 percent to 25.2 million barrels. However, stocks were 1.7 percent less than the same week last year and 1.4 percent below the three-year average. Inventories were built across the East Coast and Rocky Mountains but thinned through the remaining regions. Ethanol exports scaled back by 36 percent to an estimated 137,000 barrels a day, which was a four-week low. 

Wheat Growers Support U.S.-Bangladesh Trade Agreement

U.S. Wheat Associates welcomed the announcement of the signing of the U.S.-Bangladesh Agreement on Reciprocal Trade by the Office of the U.S. Trade Representative. “The signing of the reciprocal trade agreement between the U.S. and Bangladesh is a win for American wheat farmers,” said Mike Spier, USW President and CEO. “Beyond putting bushels on boats, this bilateral agreement reinforces our shared commitment to a mutually beneficial relationship with Bangladesh.” In July 2025, USW signed a Memorandum of Understanding with the Government of Bangladesh, which committed to annual purchases of 700,000 metric tons, or 25.7 million bushels, of U.S. wheat for the next five years. Bangladesh is already fulfilling that commitment, rising from a swing buyer to the eighth-largest market for U.S. wheat in the 2025-2026 marketing year. As of January 29, 2026, Bangladesh has purchased more than 676,000 metric tons, or 24.8 million bushels, of U.S. wheat. 

Friday Watch List

Markets

Friday looks to be a mostly quiet session for reports, but traders will tune in at 8 a.m. CST to see if USDA reports any flash export sales. After the close, CFTC will release their Commitments of Traders report which will update trader positions as of Tuesday, February 10.

Weather

Throughout Friday, scattered showers and storms will gradually develop across the southwest Plains as a system from the Desert Southwest arrives. A few marginally strong to severe storms, providing risks for large hail and damaging winds, will be possible across western Texas into central Oklahoma. By early Saturday morning, these areas could see around 0.5-1 inch of rain.