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SE ND | First off, good job managing risk. You obviously can do what you want and you're in the driver's seat at the moment. If you don't mind, I'd like to have you ask yourself a few questions. What makes me think that price is done going lower? Will I regret not keeping hedges on if I exit now and price makes new lows? Where will I get short again if hedges are lifted and the market continues to bleed out?
I think many of us have learned some tough lessons by lifting hedges. I know I have and I tend to really regret it.
What I've found to be a better method for me is to call a hedge a hedge and it stays on unless I can see there isn't enough grain to fill it.
Then decide on a fixed amount of risk that you're willing to accept that will provide upside protection. Is that 10 cents? 15 cents? More or less? That's your call.
We are in a carry market and that hedge could help you capture another 30+ cents (potentially) if you can store it and watch the spreads. It's already at 19 cents now out to N5. It will likely swing but there are good opportunities there.
Good Luck!
Often the KISS method works the best. | |
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Keep 2024 corn hedges or not?
