New Crop Hedge Pays Off

June 2, 2010 07:00 PM
 
By Linda H. Smith
Business & Marketing Editor

With positions marked to market as of June 1, the marketing advisers tracked by Top Producer who some handsome profits on new-crop hedges or hedged-to-arrive contracts, ranging from 8¢/bu. to $1.29/bu. on corn and 13¢ to $2.26/bu. on soybeans. "These represent a weighted average—the value of a 20% hedge is averaged over all 100% of bushels, for example. And, of course that value changes daily,” says Scott Harms of Archer Financial, who trades the advisers' recommendation for clients. Although fewer advisers have options positions, most of those are in the black as well.

Only three advisers have made 2010-crop cash sales in corn, at $3.92, $3.96 and $4.63 and totally 35% to 50% of the crop. Five advisers have some from 10% to 40% of the soybean crop, locking in $9.05 to $9.81.

Click here for the tables showing all values and explanations of the methodology.


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