Mark's Market Talk for June 3, 2024

There was no good news in the grain trade last week as everything ended the week in the red. July corn was down 18 cents and Dec corn ended the week down 21 cents. The stock market and crude oil also closed lower for the week. So where did the funds put their money last week? It appears they took some of it home in their pockets. Even though there is uncertainty about the US crop production at this stage of the year, the world stocks do not currently show a supply problem. The one bright side in the corn market is exports have continued to be strong. However, the sky is starting to darken here as late summer bids out of Argentina are lower than our prices. Therefore, our export opportunity may be short this year and someone else will probably supply China their corn needs. July beans were down 43 cents last week and Nov ended the week down 35. Farmers are struggling to finish bean planting and yet the trade feels we will raise more than enough beans. China has still not bought any new crop beans in their name from us, and this is highly unusual to be headed into June without some of their business. Some are worried if we put tariffs on more Chinese products, they will go elsewhere to buy commodities. It looks like they are already doing that, so we just as well go down the tariff road. Bean basis improved just a bit in the interior plants last week. Producers continue to be stubborn sellers even though the market and interest is working against them. The board will trade weather until the USDA releases their planted acreage report later this month. Until then keep an eye on the markets and take advantage of any bumps that come along.