Mark's Market Talk for June 1, 2026

We saw a perfect week of weather following Memorial Day weekend. Talks of a possible agreement to end the war surfaced late in the week, although this may have been the third time we have heard that announcement. Planting progress remained ahead of normal and is about finished. We still have not seen any solid confirmation from the Chinese government regarding additional commodity purchases.

As of last Thursday, the funds remained heavily long in both corn and beans. They were holding 256,000 corn contracts and 204,000 soybean contracts. On top of that, crude oil dropped nearly $10 per barrel last week. All of these factors combined to put some blood in the markets. New crop soybeans and bean oil were the only major commodities that managed to move higher.

July corn closed the week down 16 cents, while the December contract lost 11 cents. July soybeans fell 10 cents, while November beans managed to finish the week 2 cents higher.

Many years we see a marketing opportunity sometime in late May or early June. Right now, it appears that opportunity has come and gone. Some of the factors listed above will need to change before we see a meaningful rebound in prices. Poor weather is always a possibility. Export sales could exceed expectations. But today neither of those scenarios appears especially likely.

It is always difficult to sell into a falling market. However, we may need to move some old crop before prices slip further. The perception is that there is still a large amount of unpriced corn sitting in the countryside that will eventually move to town. Whether that is true remains to be seen.

Input costs were expensive this spring, and unless a farmer had a cattle herd generating cash flow, many were left doing what they always do: selling some grain to put the 2026 crop in the ground. Local basis levels have been decent, but not tight enough to suggest terminals are desperate for ownership right now. That could change as we move deeper into the summer.

Last week soybean processors were making around $3.60 per bushel on the crush, while ethanol plants were earning 60 cents per bushel or better. As long as margins remain at those levels, both industries will want to keep their plants running at full capacity.