From Grain PhD –

Harvest activity is complete or nearing completion and you are faced with historically weak basis and corn values below their cost of production. You are likely planning to store corn in either on farm storage or through the local elevator, crossing your fingers and hoping to achieve a profitable sales price at a later date. I am asking you to “Think Outside the Bin” and consider re-ownership. This will allow you to avoid storage shrink and paying hefty storage costs, while still setting a minimum price for your bushels and participating in potential future market gains.


Strategy 2: If you are more risk averse consider making a cash sale and purchasing a call option. Your overall risk is limited to a one-time premium cost, which will vary depending on the amount of time purchased. The long call will allow you the ability to be long the market and maintain ownership of your previously sold bushels while avoiding the risk for additional margin funds if values decline.




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