The recommendation is to buy at the money February puts on any grain that needs to be moved by the end of March and on any new crop grain that you typically have sold pre-planting.

We are using the February puts to keep upside open while getting protection right at the market.

When you buy a put you hope it expires worthless and are able to make a good cash sale instead.

With Trump coming to office and SA weather we are in for some volatile markets.

We also have some signs of possible reversals on the charts today with corn and beans well off this mornings highs.

Corn is +70 cents off it’s lows and beans +$1.00. Makes sense to reward this rally with a hedge or a sale.

If you do not have a hedge account or prefer to make a cash sale instead then simply make a cash sale instead. I would do a little bit of both old crop as well as new crop. Make a typical incremental sale. Perhaps 5-10% depending on how sold you already are and how much you typically sell in increments.

Ideally you want to have a hedge account for opportunities like these. As we prefer to make a hedge here rather than a cash sale especially in new crop.

Have questions? Shoot us a call or text:

(605)295-3100

If you want to open a hedge account with us:

Click Here

Looking at the charts, we were a little short of the targets but not the best action today. Makes sense to take risk off here in case it does happen to be the local top for a while.