It feels like we could be nearing another market shift as we approach the August 12th USDA crop report.  This report, in particular, is unique this year as it will finally reflect the prevent plant acres. Most are in a state of optimism with ideas of 7 to 8 million or more prevent plant corn acres and upwards of 20 million across all crops grown in the US.  This factor, in particular, has been the most highly scrutinized as it could be the most impactful one way or another, but I think it’s important to look at the entire big picture.  Here are some additional facts and truths to consider when deciding to clean up old crop or not, and dabble into new crop.

With all this in consideration, I feel we should continue to clean up old crop corn and lay off some new crop as well.  If you’re more optimistic, then let’s put in some strategically placed offers or purchase some calls against cash sales.  I really like the option strategy in this environment because we can purchase calls and still maintain a profitable minimum price.

Please reach out to your local Key Cooperative grain team to answer questions and implement a marketing plan!

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