For some farmers, it’s about time to get the combines in the field. Farmers who still have old crop in the bin may be wondering if it’s too late to get rid of old-crop corn and what they should do with it.
“We’re coming into the pre-harvest lows—the South American crop is big,” said Bob Utterback, president of Utterback Marketing. “There’s going to be a lot of weight on this market for the next 60 to 90 days.”
He said farmers have a tough decision to make: if they should mix old-crop with new-crop corn or if they should reown it on paper. He believes the only option for farmers if they want a recover in price on corn is to reown it.
“My preference is to buy an in the money call so I can adjust if the market breaks,” said Utterback. “You got to prove that USDA has been wrong in their yield estimates, which I think will confirm that before it’s all over."