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Ol’ Wisco | I utilize crop insurance to it’s full extent so by the end of Feb I have all price risk off that current years production. That entails a blend of forwards, futures and options. It changes dependant on market dynamics year to year. It’s a fluid process of having no price risk on and taking advantage of volatility through the growing season. I try to have basis set on 50% or so production by fall and look for basis opportunities on the stored inventory while keeping futures price risk flat through the following marketing year. I like to have 50-75% of the next crop years insurance price fixed by dec through the use of NCSD options.
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Soybean basis
