Between USDA’s good crop rating reports and summer weather as a wild card in the markets, producers may be getting anxious. But they can use strategies to offset market volatility, according to Jerry Gulke of the Gulke Group in Chicago.
“As soon as the ink was dry on that crop report of the USDA, the market turned to weather again because that is really going to be the determining factor,” Gulke told Pam Fretwell of Farm Journal Radio. “It does this every year. You make or break your crop in July or August on corn and beans."
But there are strategies producers can use, including futures, options, puts, and cash sales, he explained.
“We made some pretty good cash sales at 35% to 45% of our cash sales, when beans were $11.80 and corn was $4.54 so we can wait it out. Thirty-five percent to 40% of the cash market is about all I want to risk,” Gulke said.
Listen to his full comments here: