To Sell or Not to Sell

Published on: 10:55AM Jun 30, 2010
Big surprises in today's reports WILL bring better prices. Analysts are divided on whether that means you should sell on the bounce or not. Bob Utterback says, "Move inventory because basis will worsen going into harvest," while Jerry Gulke says, "We're in the catbird seat; don't sell into this, we have a long way to harvest."

This may be an ideal time to separate basis and futures decisions--if you need to clear bins, look for some sort of basis opportunity and do so. If you are in the Gulke camp and want to capture a rally, consider call options. "We had some calls bought against short positions," Gulke says. "We'll lose about 8 cents on those, but it is far better than being in the market naked [unpriced] or fully hedged."