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.

To read the entire article, link here.