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Marketing ideas outside of rolling Dec. forward

Agriculture.com Staff 05/02/2006 @ 9:50am

I know that you always refer to marketing in the December contract and rolling ahead, what if we are in a situation where we cannot roll the contract-Not Offered A Lot Of Marketing Alternatives.

This last up tick in the corn market showed the demand is coming for next year, not this fall. If the spread between December and July is wide you may be just as well of marketing off next year's contract. Many markets will only let you contract off one month with no opportunities to take advantage of the carry in the market. This also shows there is some fear of the amount of corn coming into the system this summer. Locally some of the markets are not offering bids for August and September delivery.

Seasonally, we are coming into the period where highs are put in prior to when planting is done. We have a situation where producers can do some marketing of old and new crop. If you have fears of missing out on a market move, talk to a broker about call options.

I know that you always refer to marketing in the December contract and rolling ahead, what if we are in a situation where we cannot roll the contract-Not Offered A Lot Of Marketing Alternatives.

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