Don Roose, president of U.S. Commodities, on Tuesday’s AgriTalk After the Bell with host Chip Flory said soybean growers may want to consider a long call option position in soybeans to lock in an what would be a crop insurance indemnity payment if policies were closing.
“We told our clients today that we were dealing with a blow-off bottom in grains,” said Roose.
“That doesn’t mean the markets go straight back up, but this looked liked a good opportunity to lock in some insurance payment coverage… and it’s a good opportunity for end-users and livestock producers to lock in some longer-term coverage,” said Roose.
Longer-term, Roose said he expects the tightening global balance sheet for corn to provide support for corn prices, but he warned the market could trade sidewas “for a long time” until that becomes a supportive factor for corn prices.
“And that’s especially true because of the crop conditions we’ve got in the field right now,” said Roose. “There may not be any weather risk left in prices at this level.”
For the full AgriTalk After The Bell conversation click the player below