68340 | Mr. Roach is a bit bearish in his daily comments yesterday. His over all view is this, I think. He looked back when corn went to $8 and stayed high after that. The world responded, or I should say the farmers of the world responded and increased production. It took several years for the production to come on, but now he thinks that we are getting caught up on our world production and IF there is no big weather problems this season price could come down a bunch more or at least not go back up again. He is encouraging producers to sell 5% in 2011 and 2012 at today's prices. He also advices to have 1/4 of corn sold that you have left from 2009. He also is encouraging producers to buy Dec. $4 puts or there about for the .41 it will cost you now for insurance for possible lower prices in the fall of 2010. He also said you might want to sell some Dec. $5 calls, making a fence spread, I think it is called, for about .19 to reduce the cost of those puts. I think the $5 would then be your max. price you would receive for you 2010 corn. Well, there is one opinion for you. He only cost like $175/year and I enjoy his thinking. |