Business

How Corn Growers Can Sell and Still Benefit from Market Upside

Low corn prices are limiting returns this harvest, but that doesn't mean farmers must miss future gains. Strategic tools like hedge-to-arrive contracts and call options can help producers sell now while staying in the game.

AgroLatam USA
AgroLatam USA

With corn prices under pressure, many farmers are heading into harvest with little or none of their crop priced - a situation that calls for clear, actionable marketing strategies to protect revenue and reduce stress. Waiting passively may feel easier, but in a market this dynamic, inaction can lead to income erosion.

Farm marketing expert Bryan Doherty, with over 30 years at Total Farm Marketing, urges growers to act now. "Every day is a new opportunity - or a risk of losing income," he warns. The good news is that producers can still sell grain while retaining ownership in the market through tools like hedge-to-arrive contracts, short futures, or call options.

How Corn Growers Can Sell and Still Benefit from Market Upside

At current price levels, the futures curve shows carry in the market, where deferred months (like March or July) trade at premiums to nearby contracts. This gives producers a chance to capture that carry while locking in sales and still participating in potential rallies.

One strategy Doherty suggests is to forward-sell a comfortable portion of your crop using hedge-to-arrive if you're not ready to set basis. At the same time, buy a call option or a bull call spread on deferred contracts. This allows you to protect downside price risk, generate cash flow, and still benefit if prices recover.

"The goal is simple," says Doherty. "Sell now, stay an owner." Trying to wait for a price dip and re-enter the market may backfire if prices spike after you sell.

How Corn Growers Can Sell and Still Benefit from Market Upside

With volatility rising and costs climbing, stress risk - the emotional burden of indecision - is another factor weighing on producers. A written plan helps offset that. Doherty recommends running the numbers, talking to buyers, and getting a second opinion from a trusted advisor. Execution, not procrastination, is what moves a strategy forward.

The key is to tailor your approach to your operation. Work with professionals, ask critical questions, and fully understand the risks and rewards before executing trades. This avoids reactive decision-making driven by headlines or emotional swings.

Whether you're managing basis, delivery timing, or cash flow needs, having a defined risk strategy can make all the difference - not just in your bottom line, but in your peace of mind. Solid marketing isn't about guessing right. It's about managing what you can control.

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