A recent price recovery in both live cattle and lean hog futures contracts is offering an opportunity for producers to lock in better prices than existed just a few weeks ago.
Ample supplies of many commodities, both domestic and worldwide, suggest there’s no urgency for investors to shift dollars into commodity ownership, at least not now.
Unlike soybeans, which have experienced increased volatility, the corn market continues to consolidate.
A common trend is for prices to move lower into the fall, and then recover by the time December futures stops trading.
Strategy 1 is keeping corn in storage. Strategy 2 is selling your corn and buying futures. Strategy 3 deals with purchasing a call option.
Managed money has established net short positions in the ag commodities.
As summer winds down and harvest draws closer, expectations that corn prices will find a low, after sliding from midsummer highs, are likely correct.
As the grain markets factor in this year’s crop size and prices find their footing, there are different scenarios that could occur.
Now is the time to plan and prepare. Set targets to begin buying and execute if prices reach those levels.
Searching for basis improvement, selling carry, and selling rallies are a few actions to put into practice.