2019 Corn Producer “Scale-In” Hedge Strategy Update

Published Sep 19, 2019 

May through July offered an excellent opportunity to start our hedge campaign for 2019.

In light of the next to impossible early planting conditions throughout the corn belt, the prices somehow, are right back down to the early May lows.

Unbelievable! Which is why a "proactive" approach must be taken by buying puts into rallies each season on a "scale-in" basis.. We had 3 trigger sell signals this year, see chart below. We try to remove as much forecasting as possible by using our triggers.

No forward contracts, no futures contracts, no margin calls, which leaves the upside wide open every growing season.

We are now in the 30 day window for a seasonal low(see 2nd chart below) and have already got a buy trigger to begin lifting the hedges. Although it is still a little early, our goal is to increase the bottom line, so exiting a portion of the hedge makes sense. Will look to be completely out and long over the next 30 days.

There are limited risk option strategies to get long that producers as well as speculators have begun to implement. Would be glad to share them with you, call/reply to discuss.

December 2019 Corn Chart Showing Trigger Points

Seasonal Chart for December Corn2019 Corn Producer “Scale-In” Hedge Strategy Update

“The risk of loss in trading futures and/or options is substantial and each investor and/or trader must consider whether this is a suitable investment. Past performance, whether actual or indicated by simulated historical tests of strategies, is not indicative of future results. When trading futures and/or options, it is possible to lose more than the full value of your account. All funds committed should be risk capital. Trading advice is based on information taken from trades and statistical services and other sources that CCS believes are reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgment at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.”

Corn Marketing