A Successful Farming article
We’ve seen a recent price setback in the grain complex, with corn, soybeans, and wheat all making a downward turn in late September and early October. This may be providing an opportunity to retain ownership of forward-sold bushels, or bushels that will be sold and delivered at harvest. Often people ask for the best way to re-own. Unfortunately, there probably is no best way, as best is relative to the risk tolerance of the buyer as well as potential return. This article will review buying futures versus purchasing a call option. What may be termed advanced strategies, such as bull call spreads, long fences, and ratio call spreads, have merit and should be discussed with your advisor.
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