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Northwest Iowa | It will stay expensive since you are buying a lot of time. Likely you will need to have several steps along the way. the Dec has plenty of time for now. Start watching some options in the Dec to see which is the best area to try. Might want to have several different strikes. maybe sell some out of the money puts to collect the premium and offset the time degradation of the purchased calls. One thing I thought about over the weekend was that with crop conditions as they are over the entire US, we will not have as big of a crop as last year. we handled last year with a drop to 3.01. much of that was tied to delayed pricing corn being settled. Big picture on fundamental of supply only is that we will have less to tuck away this year. Should be stabilizing if nothing else. Lots of other fundamentals from the supply side including where the corn is needed vs where it is produced, extra hogs to feed, exports, etc. Technically, we are oversold and need at least a bounce. Final low in place----- we'll see. | |
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Extending 2017 Corn season
