Wheat prices have made a significant turnaround in recent weeks, as continued dry weather in major wheat-exporting countries worldwide are providing underlying support.
The dairy industry continues to struggle financially.
With Brazilian soybeans currently priced nearly 24% higher than exportable U.S. soybeans, the 25% tariff imposed by China is already factored into the market.
On July 11, looking seven days out, December corn futures finished higher four out of the past 10 years.
Prices are below the cost of production, and we don’t see a compelling reason to sell into weakness.
The logical conclusion is that another high-yielding crop could be at hand.
By selling put options, you are looking to collect the premium of the sold option and accepting risk.
While the market looks in trouble now, the more dominant and most critical factor determining price will occur in July and August. As weather unfolds, so too will price direction.
We do not see farmers aggressively selling corn on price setbacks until late July or August when they have strong confidence their crop is on the road to maturity and high yield.