Analyst: Lock in Corn Carry, Projected to Build

October 20, 2016 10:44 AM

December contracts are showing 2017 corn is approaching $4 per bushel, according to Brian Basting of Advance Trading, Inc.

On Market Rally Wednesday, he tells farmers if they have a weak basis during harvest, they should look into buying deferred put options, either in December or March.

Basting advises farmers to lock in the carry, which will provide upside potential if South America would have a problem. This lock in the floor will leave the upside open because “carryout is projected to build,” said Basting.

He also says a combination of a rally, new crop, and low-option volatility will be something to keep an eye on in 2017 when considering options for next year's crop.

Listen to Basting on Market Rally above.

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