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N FLA | I help a friend/farmer with production, marketing, etc. He should produce about 65,000 bushels of corn and has the storage for it. In May we made the wise decision to sell 50k bushels on the board for March at 5.11 avg. Local buyer would only forward contract at +.30 for Jan delivery, said risk yadda yadda.. They were +.85 last January and are +.45 for August which is our peak harvest. Hardly any corn in our local this year, so we just have to compete with rail from indiana. So we thought using the board was the right approach. He delivers corn in January which works for his time/schedule.
We've talked all season about lifting hedges if we thought the market looked "bottomy" and we are thinking that time is now. . What do you think about lifting hedges here? If we drop 0.30 it won't be the end of the world. If we drop $1 it might be rough. I think we lift half and see where it goes from here. I think they overdid it on the big yield talk and estimates. Dry August and we are right where we left off last year.
Edited by puff33m 7/28/2014 03:01
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thoughts on situation
