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Minnesota | Take this for what it's worth, but I'd check with your grain buyer on what they will let you do first, but I'd do that now. Some you can buy out, some you can't, depends on the merchandiser. Another important question to ask is if they will let you buy out, do they need any proof of PP? If they do, this will take you probably a month yet to get that proof so you may need to consider the risks of time. If you know for sure you aren't going to plant, acting now during a higher market is best but waiting in a lower market is best. You tell me which way we're going??? When I had some PP in 19 I bought mine back right away because I needed proof to buy out of my contract. 1 month later when I had that proof, the market was lower, but in between it had gone much higher on the delayed planting. At the end of the day though, I think buying it back now is best from a risk management standpoint because being at $9 will hurt much more than having to buy it out today will. If your price on contracted bushels is substantially lower than the market today, you may want to consider buying a short dated call and then wait it out. They can be bought cheaper and would protect you to the upside, but really it depends mainly on my original point about talking to your buyer and knowing their rules first, then trusting that their rules won't change. | |
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buy back unplanted corn now or wait
