By Jon Scheve, Superior Feed Ingredients, LLC
On 4/23/19, when the corn board was in free-fall, I priced my remaining 2018 crop on futures. I didn’t set a cash price, and instead I was waiting for a higher basis. I received $3.61 against July futures on the remaining 54% of my ’18 crop I still had unpriced.
Why sell futures now?
There were several reasons.
- I was concerned with how much corn prices had fallen already.
- It was apparent to the market there was too much U.S. and global corn supply.
- I’m only 10% sold for my 2019 corn and have no 2020 sales.
- The risk of African swine fever appearing in the U.S. is always present.
- There is unknown trade risk with China or even if NAFTA 2.0 gets signed.
- On 4/23/19 forecasts indicated that most of the Corn Belt would have a 15-day window of good weather to plant.