The old saying that perception is reality may have a place, on occasion, when market volatility increases.
Another way to look at owning options is owning a tool that provides unlimited potential and limited risk.
Prices have been more volatile than a year ago, and are offering better opportunities to sell both old and new crop.
Preplan for summer weather to dictate price movement. Prepare yourself for any price direction.
Typically, about 40% of the U.S. corn crop is planted in April.
In preparing for price changes, an important item is knowledge of the players in the markets, and how they are positioned.
With volatility, the opportunity to sell rallies and buy price breaks increases.
End users of corn should be keenly aware that world supplies are on the decline, and that cheap and readily available corn could already be behind the market.
Production challenges exist every year, and weather is still the dominant factor affecting supply and price direction.
The perception, suddenly, is that world supplies could be tighter and prices are now trending upward.