Analyst wonders if market has reached post-derecho peak
The director of producer brokerage for CHS Hedging thinks this might be an opportune time to sell.
Kent Beadle says with corn rallying 25 cents and soybeans 50 cents, the market has probably peaked in the aftermath of last week’s derecho wind event.
“We’ll probably back-end fill for a little bit, maybe have a retest of those lows. But then I think there will be a normal post-harvest rally that growers will have an opportunity to market into.”
He tells Brownfield it’s going to take patience and the proper use of tools to successfully build a price before, during, and after harvest.
“Options positions to re-own sales, as well as short options positions to establish an accumulator-type positions, or you know additional premiums that growers can take advantage of.”
Beadle says it’s possible the lows made ahead of the derecho will be the lows the rest of the year, and he expects them to be re-tested in the next month or two.