While the corn and soybean markets have been strong, Advance Trading Risk Advisor Ben Peters says farmers may not be participating in this rally. “It’s human nature to reward the market when it gets to black ink. They sold 90-plus percent of their old crop beans and probably 80 percent of their old crop corn (last fall) so they don’t have many bullets left.” At this point in the season, there’s also a natural reluctance to sell a large amount of the expected new crop supply. “I’d say most farmers are on the sidelines until they get the crop planted and are well into their production season with the exception being the farmers that have some of the tools they’ve learned along the way.” Those tools would include Guaranteed Minimum Price contracts or an options strategy.
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