It’s time for corn and soybean producers to begin our scale-in put buying hedge strategy.
Does this mean we are bearish looking for a top? By no means, in fact we are hoping for much higher prices, as most of the ag world seems to be. A continuation of this rally would be the best situation for our producer clients. So we tell our clients implementing this hedge strategy their goal is to lose money with us. That’s right, sound crazy, think about it, it they lose on the puts, it means they are making a lot more on their cash dwarfing their option losses. In addition, we assist with cash sale management as well.
With the exception of the last few years, most years we see declines into harvest. Will this be one of those years? It could be but it’s anyone’s guess.
Take the guesswork out of your hedging and utilize the scale in strategy.
I welcome your questions/comments.