The Prospective Planting report was bearish for corn
I would assume many producers were surprised at the 93.6 million acres the USDA assumes will be planted in corn this year. The market will assume this is a valid figure until proven wrong and this will not happen until the Actual Acreage Report in June or we see continued moisture during spring planting.
It will be difficult for December corn to move back above the $4 level. It would take a reduction in acres and a weather event during pollination for this to happen. If we assume this to be true, it will be difficult to see much profit in corn when all is said and done.
Put buying and bear spreads should be implemented for the anticipated unsold bushels. If one wishes to use futures, those positions should be managed and a long call implemented if necessary to offset upside risk exposure.
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