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Use every marketing tool to ride bull market higher

Proactive grain marketing has allowed many farmers to ride the bull market higher.

CHS Hedging director of producer brokerage Kent Beadle says he started recommending long call options over the winter.

“And having those long call options has allowed us to scale into new crop sales. So we are now officially 50 percent hedged of the 2021 crop in both corn and soybeans.”

He tells Brownfield he’s a little more bullish on corn and suspects the biggest runups in this rally have already occurred.

“We do think we can have higher highs, and that we probably will have higher highs. But it’s going to be a lot more choppy.”

Beadle says there’s a lot of revenue to protect and recommends making scale-in sales at these price levels.  But he also suggests using call options, call option spreads, or just straight puts to maintain some upside for the anticipated volatility.

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