Who is this for?

This is specifically for those who are behind in their marketing, are short on time, or lack storage. This includes those who need to move something off the combine for whatever reason. You need to be more proactive.

That being said, our long term bias leans higher as we see plenty of upside potential.

If you are in a comfortable spot in your marketing or do not have to move anything, we like being patient.

But if you are in one of those situations where you simply lack time, rewarding the highest prices we’ve seen all year entering harvest may make sense for you.

We prefer to use options to lock in a floor, while keeping our upside open. If you do not want to use options, you could consider making an incremental cash sale.

If you scroll, we go over a few potential options strategies to consider.

If you have questions, feel free to reach out via call or text.

Office: (806)484-1214

Charts & Reason for Alert

Dec Corn 🌽

We are right up against those highs from March. Flirting with the highest prices we’ve seen all year long.

The biggest reason for caution here is that we have bearish divergence on the RSI.

Prices posted new highs, taking out the July highs. Yet the RSI did not post a new high.

This can often be a possible sign of fading upside momentum.

This does not mean we cannot go higher. It’s simply a reason for caution.

Bearish and bullish divergence has marked several pivots in this market this year.

For example, it marked the May highs and the June lows.

Our Next Target:

$5.12-13

That is the 161.8% level from the recent lows up to the July highs.

A common continuation target.

So this is going to be our next area we are watching to de-risk at as of now.

(Scroll for one more reason for this target)

$5.12 is also the contract highs.

Strategies to Consider

Disclaimer: there is risk of loss trading futures and options. Past performance does not necessarily indicate future results. This is our opinion and should be treated as such.

There are several ways you can protect your downside while giving yourself some upside.

These strategies may or may not be suite for you.

So give us a call if you’d like to discuss what would work best for your operation.

Office: (806)484-1214

(Strategy 1: Put Protection)

If you want to keep it simple.

You could buy an October put to lock in a floor.

Here is the current approximate costs.

$4.95 is 15 cents
$4.90 is 11 cents
$4.85 is 9 cents
$4.80 is 7 cents

(Strategy 2: Sell Call for Put Protection)

You could sell a call to help pay for the put. Selling calls lowers the cost, but does require margin.

For example you could:

Buy a Oct 2026 $4.90 put
Sell a July 2026 $6.50 call

This is roughly a zero cost trade but involves margin. This also offers calendar spread risk.

This gives you a floor of $4.90 until the Oct puts expire.

While giving you a max upside of $6.50 for new crop July provided you don’t roll it etc.

(Strategy 3: Sell Cash & Re-Own)

You could make a cash sale and re-own via options.

Leaving you with upside exposure.

One strategy you could consider is a 3-legged strategy.

Sell a $5.50 Dec call
Buy a $5.10 Dec call
Sell a $4.65 Dec put

This would be roughly zero cost.

Breakeven would be $4.65 to $5.10 at expiration.

With a max upside of $5.50

Below $4.65 you would re-own via futures.

Again, selling options can lower the cost of a trade but involves margin risk.

Below is a chart that shows how this trade would work at expiration.

(Strategy 4: Sold Old Crop & Re-Own)

If you sold old crop corn and would like to re-own, here is a possible strategy that allows you to re-own it for the potential to sell new crop $1.00 above the market.