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4 key corn & soybean charts to watch
The following corn and soybean charts show that corn prices put in major highs in June of 2008, 2009, 2011, and 2013. You can also see the major lows in 2010 and 2012. These are key parts of a 4-part plan to make better marketing decisions, according to market analyst Al Kluis.
This chart shows that corn prices put in major highs in late June of 2008, 2009, 2011, and 2013. The corn market put in major lows in late June of 2010 and 2012.
This chart shows that soybean prices put in major highs in late June of 2008, 2009, and 2013. The corn market bottomed out in late June of 2010 and 2012. In 2011, the market put in a short-term low in late June, rallied into August, and then dropped to a harvest low in November.
In four of the six years, having new-crop price protection in place was the right marketing and management decision. Having new-crop corn sold ahead has been the right decision in 25 out of the last 30 years.
This chart shows the results of having new-crop protection in place, using hedges on 50% of your crop, or using puts on 100% of your crop. In four of the last six years, having 100% price protection in place with puts has outperformed using hedges.
Watch these charts to glean trends when it comes to buying hedges or puts.