November 20, 2023 |
ATI Newsletter 2023 - Week 46
A significant percentage of 2023 U.S. soybean production has been sold. By purchasing call options when sales were made, a producer not only eliminated downside price risk but also maintained control of bushels to participate if a bull market were to happen. With January 2024 soybean futures rallying $0.75 since early October, management of call option positions has taken on added importance in defending net equity for 2023 production. By controlling the emotions associated with a stronger market, a producer not only remains focused on execution but can also begin managing a marketing program for projected 2024 bushels.