Posted by: usset001 | July 9, 2010

Second chances are good in the corn market too

Just 9 days after closing at $3.44 per bushel, Dec’10 corn futures are on a tear and closed at $3.96 on July 8, and back above my (revised) minimum price of $3.90. Summer rallies always make you pause and think, “Should I step in front of this train and sell, or should I follow the trend?” My sense is that this is a year when I want to sell rallies, and not get carried away with the bullish sentiment of the moment. I made the sale. Then again, if the rally continues, I still have 25% of the 2010 crop to price and I have yet to start on 2011.

I am 75% sold on my 2010 crop at an average Dec’10 futures price of $4.12 or a cash price of about $3.65 per bushel. Look for an updated posting of my 2010 pre-harvest marketing plan by early next week.


Responses

  1. Very interesting, makes you wonder how crop prices will be affected in lousiana area after the oil spill…


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