Back in the mid-1980s, options were introduced and changed marketing for farmers who only had futures and forward contracting as tools.
Now, there’s a new tool for farmers to use: short-dated options.
“Short-dated options are options that are based off a December corn futures or November soybean futures; however, they have a shorter window of time,” explained Bryan Doherty, senior market advisor of Stewart-Peterson to AgDay host Clinton Griffiths.
Now that summer volatility is here, Doherty says there are short-dated options that expire in July.
Hear Doherty explain short-dated options in length on AgDay above.