Market Watch expert offers strategy and outlook on corn, beans, wheat and cattle.
Producers should be sold/hedged on 100% of 2010 crop with hedge to arrive contracts as basis levels will likely to improve during the winter, according to Brian Hoops, Market Watch.
In a strategy analysis, Hoops advises producers should to be 50% sold of the 2011 crop after making a sale at the $9.54 level against the Kansas City contract.
“We look to make additional sales on spring and summer rallies,” Hoops writes.
Producers and are now sold/hedged on 80% of the 2010 crop and re-owned 35% of sales/hedges with at-the-money July call options after rolling up March and May calls.
Producers should have 30% of new crop production sold.
Make another old and new crop 10% sale at $8.24.
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