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EC SD | If you raise corn, then you are naturally long the Dec corn contract. If market is in a clear uptrend, then you may want to sit with that position unhedged. If market is ambiguous, then hedge that Dec contract to have neutral exposure. If market is clearly trending down, then hedge that Dec position plus consider taking a short position on top. The extra short position can be in any timeframe you like, since it is a speculation, not a hedge.
I don't personally go out multiple years with market positions, but some do that too.
Please note: Unhedged production has price risk and speculation has price risk also. Hedging production reduces risk. Lower risk generally means lower returns, but get to stay solvent for the long term. In other words, understand the risk level you are comfortable with, and make sure you don't YOLO your assets to zero. | |
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Corn/ Bean Bottom
