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Missed some market news this week? Here's what you need to know to market your grains.
Ag Marketing IQ
I’d say bullish sentiment is significantly higher than it was at $3.25 Dec corn. How does that make sense? As the market rallies, we all feel whatever is causing the rally will continue to push prices higher. Producers consistently ask me what we need to do to ‘protect’ from the prices going higher. Excuse me? We just rallied $3! I certainly understand wanting to participate in additional moves. However, we don’t need ‘protection’ from additional upside…our risk is to the downside.
Today’s grain producer has transparent and very liquid trade tools to manage next week’s, next month’s, or next year’s price risk. The broad menu of products allows those who wish to mitigate risk to narrow the time and price they want to manage, while remaining open to advantageous price moves.
Profit-taking at the end of the month following a big rally isn’t unusual. But Monday’s losses in...