|
NE IA | Just in case you are wondering about collecting insurance at current market prices...
Assume 85% coverage, and actual harvested yield is at your APH:
- Soybeans guarantee = $9.82 (Spring price $11.55 x .85). Today's ZSX4 CME price = $9.62 -> INDEMNITY = $11.85/ac
- Corn guarantee = $3.96 (Spring price $4.66 x .85). Today's ZCZ4 CME price = $3.97 -> INDEMNITY = $0.0/ac
Key takeaways:
- Market action in the last two days put Soy in insurance territory, but corn still is not
- At APH yields, you won't have a windfall insurance indemnity payment at current prices
- At higher yields, you won't get a check, but let's hope the yields beat APH and outstrip further price declines
- At lower % coverage levels, you're not getting a check without further price erosion (be careful what you ask for...)
- Conspiracy theorists will say we are very close to a market bottom to avoid widespread insurance claims
Check my math.
Edited by Farmville 8/13/2024 15:20
| |
|
RP Insurance
