|
Northern Illinois | Now that we are at $7 Dec futures I'm just wondering how everyone is planning on taking advantage of this price run up. I realize that our yields may vary from 0 to near normal but there is opportunity for all of us. For those with a near normal crop you can sell your corn at a price unthought of a couple of weeks ago. For those with a poor crop you can lock in your fall harvest price to increase you bottom line. Or we can do nothing at this time and think that at harvest the price will be higher and thus sell our corn at a higher price or our insurance price will be higher. Some people are likely considering sell 2013 and 2014 corn.
I am trying to look at things to determine what my options are so that I can make a better decision. Currently I have 5% of my expected yield sold at $6 fall delivery and 5% sold at $6.50 fall delivery. I have a trailing stop on 33% of my corn about $.40 under the Dec corn high and 33% of my corn bu on a $.30 trailing stop in the Dec Chi wheat. I have had those in place from the time corn got over $5.80 on this run up. I thought about options but don't want to pay about $.60 for an at the money put. Not interested in selling calls. Margin calls could get expensive if we keep going up. I am wondering if my trailing stop is to close because we could start to get some wild swings down and then back up.
Just trying to think if there are other ways to do things that I am not considering.
Edited by jonas grumby 7/6/2012 11:25
| |
|
What is Your Marketing Plan Today??
