The latest Heartland Hedge Update from Heartland Commodities and Securities discusses the current futures for corn and soybean futures and what that means for you.
It looks like Dec 24 Corn futures have been bouncing around the lows for the past few days. If you are at 85% RP insurance you are right at the point where it kicks in if you hit your APH. 80% kicks in at around 3.71. When we look at the cash coverage that has been placed throughout the growing season along with current optional coverage, there are some things to look at so that should prices bounce back, things look better, yet if the market heads down into the 3.50 mark, revenue is not much different than where you are currently. Look, I know this might not make much sense to many readers, but when you plug hedges, APH targets, and cash positions in the Heartland system, we can paint a very good picture of where you are now and what you might want to do as we shock your revenue over an array of prices.
For beans, it is a guessing game on where yields actually come in vis a vis APH numbers. Being $1.70 off the spring price, insurance in beans too is becoming a major component of how to structure the position. Where you may be today is a function of any hedges you may have in place, either cash, options, or both, around the time the spring price was established.
Want to know more? Give me a call at 320-761-0406 or email [email protected]. Thanks for reading.