Jan 10, 2014
Corn hit a new multi-year low in 2013, and after noted farmer sell off over the last few weeks, here comes the infamous January crop report. This report never seems to come quietly. Five out of the last six January crop reports have seen limit up or limit down moves. With corns new lower price structure we didn’t have a limit up move, but percentage wise, it knocked our socks off.
So as a farmer what’s one to think? Everyone ran to options to ease their minds by buying puts, but the real heroes were the calls who everyone thought were dead. With wild markets like we saw today it’s essential to have a better understanding of futures and options markets. There are so many different ways to educate yourself and to monitor your risk. We here at Trade the Farm are always here to help farmers understand and manage these risks.
I often joke on twitter @tradethefarm, that the American farmer is caught long. Well tonight these American farmers can sit back, relax, and have a drink, because it certainly looks like this cat does have nine lives.
Please feel free to contact us at any time 1-855-737-FARM.