News

Farmers advised to sell on carry, re-own corn with fixed risk options

A market analyst says farmers can capture the upside of a depressed corn market.

Bryan Doherty with Total Farm Marketing tells Brownfield there is a carry to capitalize on.

“Which awards a farmer to forward sell to a deferred month, think about those advantage points. If you don’t have storage space or you don’t want to store all this without it priced, go ahead and get these new crop sales made on the carry.”

He then recommends going back to buy fixed risk option strategies.

“You’ve sold grain, you’ve got it re-owned, you make it seamless, and you’re in front of the market for a long period of time. And it doesn’t really matter if the market goes up or down, you’ve done some things to take action.”

Doherty says the downside risk is minimal with corn prices already so low but cautions the upside potential is also limited because of the expected large U.S. crop.