When USDA increased its crop production report last week for both corn and soybeans, it might not have come as a surprise to many producers. Brian Basting of Advance Trading, Inc. wants producers to defend their balance sheets by getting control of the “tremendous” bushels.
On U.S. Farm Report, he urges farmers to establish a floor, whether that be getting a put option, a sale on a call option, or another marketing tool.
“Give yourself an opportunity to participate if there is an issue in South American weather,” said Basting.
While Basting has an optimistic look on the markets, Jim Bower of Bower Trading warns farmers to “tamper down your enthusiasm” because of the situation the country is in based on politics, currency, interest rates, and inflation
Watch Bower and Basting on U.S. Farm Report above for Bower’s two options strategies.