4 Ways to Handle this Bull Market
1. Base your selling decisions on your farm profitability and do not worry about what you are reading on the Internet. The same people who wrote about $8 soybeans in June are now writing about $21 soybeans; they are likely to be wrong again.
2. Be a scale-up seller and don’t look back.
3. Use all the marketing tools you have available, including a combination of cash contracts, hedges, and puts.
4. Look at pricing some crops ahead – all the way out into 2016 and 2017 – on this rally if those prices get up to an acceptable profit level.
My farmer caller from Missouri phoned back in late July and told me he lost money on the puts. However, because he could only get 35% of his corn acres planted and none of his soybeans in, he was sure glad he had not made any delivery commitments.
“I did not mind losing money on the puts. They let me sleep at night,” he told me, then he asked, “Now, how about buying some calls?”