Overnight grain trading was lower but caught a bid late in the session.

May 21, 2026

Grains faced steady selling pressure during the overnight session, but around 5 a.m. the market recovered from its lows, with soybeans climbing back to unchanged. The rebound followed reports that Iran’s supreme leader stated any uranium stockpiles would remain in Iran. Heading into a three-day weekend, the market now faces the possibility of heightened geopolitical tensions, especially if President Trump responds with another forceful message aimed at Iran. Crude oil prices are violently oscillating around the 100.00 mark and will soon break out, one way or another.

On the export front, corn demand continues to improve after prices moved lower the previous week. Export sales came in above 2 million metric tons, once again signaling to the USDA that its current marketing-year export projection may still be too conservative.

Planting progress across the U.S. remains mostly smooth, with generally favorable conditions for early crop development. Much warmer temperatures are expected next week, benefiting some regions while increasing stress in others. This is the point in the season when traders begin shifting more focus toward U.S. weather patterns. With a three-day weekend ahead, positioning in the market is already becoming elevated. If forecasts continue trending warmer and drier, grain markets are likely to respond accordingly.

There is news coming out of Russia that wheat crops are being affected by a fungal disease called Fusarium, which can damage kernel quality and production. Meanwhile, the southwestern portion of the Russian wheat crop has seen cool, wet weather to the point where rains are becoming excessive as the wheat ripens. This has kept them from using fungicides to fight the disease. Again, this is just another sign that wheat production around the world is not increasing but is slowly declining. Six months from now, the cupboards won’t be full, they won’t be bare either at the moment, but they will not be as flush as the world has become accustomed to.

Traders also remain underwhelmed by the latest U.S.-China trade agreement. The lack of confirmation from China is creating skepticism about how meaningful the deal actually is. At the same time, China has reduced imports from several suppliers, suggesting it may currently feel comfortable with existing reserve levels. Just a reminder that grain futures margins have elevated anywhere from 5-10%, which has some traders reducing the total size of participation, which works against volume on a daily level.

Yesterday brought another extremely volatile session in the cattle markets. Feeder cattle futures sold off aggressively early in the day, with the August contract breaking well below 360 before staging a sharp rebound and pushing back toward major resistance near the 366 settlement area.

Live cattle futures also faced heavy pressure, with deferred contracts finishing more than $2 lower after trading nearly $5 down at one point during the session. Ongoing concerns surrounding the Fort Morgan, Colorado packing plant continued to weigh on the market after union workers voted to strike, although much of that news had already been circulating.

Feeder cattle prices also experienced a dramatic intraday reversal after reports surfaced that a potential injectable treatment for New World Screwworm will be approved as over-the-counter for use. Yesterday’s cash feeder index popped almost $3.00 to $372.44, while at the same time, a light activity was reported for negotiated cattle trade. Live trade in the north was put at $265-265, which would be a gain of almost $2 higher, while dressed trade was at $415, up $4.00. In the South, some trade was reported at $260, which was steady with last week.

Tomorrow’s COF report has feedlot inventory at 102% and placements at 103%, while marketings will likely come in at around 91% of last year. In yesterday’s newsletter, we had the placements and marketing numbers flipped.

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Past performance is not indicative of future results. The information contained in this report is intended for informational purposes only and is the opinion of the writer and may change at any time. This information was compiled from sources believed to be reliable to Heartland Investor Capital Management , Inc. but accuracy cannot be and is not guaranteed. There is no warranty, expressed or implied, in regards to this information for any particular purpose. There is SIGNIFICANT RISK of LOSS involved in trading futures and / or options on futures and may not be suitable for all investors. Investors should consider these RISKS and evaluate their suitability based on their financial conditions. No one should ever consider trading futures or options on futures with anything other than RISK CAPITAL . NO LIABILITY on the part of the author exists for any trading loss you may incur in the use of this information. The information contained in this newsletter is privileged, confidential and protected from disclosure. Any further disclosure or use, distribution, dissemination or copying of this message or any attachment is strictly prohibited. Provided by Heartland Investor Capital Management, Inc. a registered CTA with the NFA, of which Eugene Graner is principal. This entity is a separate legal entity from the Introducing Broker Heartland Investor Services.