A common theme throughout this year in the markets has been to expect the unexpected and be prepared to manage price risk. From planting corn in June, to the December futures high in July of $4.7325, to the missile strike on the world’s largest oil stabilization facility in Saudi Arabia which caused oil to surge up to $63/barrel, to the COVID-19 virus which has led to the decline in ethanol due to the lack of fuel demand and ultimately oil trading at a negative $40/barrel. This year has been full of surprises (to say the least) and has only further emphasized the need to manage risk in the markets. With the current futures market pushing towards $3.00 corn futures, the need to ship/market bushels has still not changed. A couple strategies that we can implement would be the Minimum price contract, the Min/Max contract, and utilizing Free Price Later.

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