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Consider selling and re-owning corn

The director of producer brokerage for CHS Hedging suggests this could be a good time to move some old-crop corn.

Kent Beadle tells Brownfield while basis has softened, levels might still be competitive with recent seasonal ranges.

“Determine if it might not be worthwhile to sell some of that cash corn to make sure that you have some cash flow coming in (but) make sure you can handle the logistics (first). Then potentially look at some sort of strategy to re-own that corn on the Board.”

Given current prices, he says a long futures position, long call option or call spread could eventually pay off.

“Now there’s no guarantee that we’re going to rally from here, of course not. But we’re looking at all of the fundamentals, and we feel that corn historically is very cheap.”

Beadle says when the pandemic is over, farmers will want to have some ownership on the Board of Trade.