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| Commercial storage is tough to beat because they will price against the carry you could be selling...... rolling to a basis contract is solid advice if you like the basis.
How much upside do you want?
What are your cash flow needs?
What would you do with the cash if you sold today?
All important thoughts.
Maybe hold until Friday and see what the report does. If you buy puts against your physical you would have a loose floor under you. If you sell today and buy calls you would stop storage and have some upside, but it would deteriorate on you similar to the way the storage fees would eat you up.
My best advice would be bull call spreads. May you could buy an ATM (3.90 call for .11 and sell a 4.20 for about .04, so for .07 you would capture a move up from 3.90 to 4.20, with some slippage. That would last you until late April. If you went to the July maybe try the 4/4.30 for about .075/bushel..... That's the best I got. Not sure it's better than paying the .03/month and waiting on a rally.... | |
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Corn in commercial storage
