With this spring’s wet planting conditions, corn and soybean futures prices rallied more than $1 per bushel between mid-May and mid-June. Basis (local cash minus nearby futures price) strengthened, especially for old crop corn. Farmers still storing old crop corn or needing to price new crop bushels were rewarded with the some of the highest futures prices and best basis levels in five years.

“Many farmers took advantage of these higher market prices, while others simply adopted ‘hope’ as their primary crop marketing plan,” said Steve Johnson, farm management specialist with Iowa State University (ISU) Extension and Outreach. Johnson is concerned about farmers relying on ‘hope’ when large price futures price rallies during the spring months are followed ...