S&P Futures
We have often mentioned that selling cash corn, beans, or wheat and replacing it with a futures or options position of that same commodity often is not the best strategy at the time.
The reason to re-own a commodity is to make money. Often, the best opportunity, the best risk/reward ratio to make money with futures or options is with a different commodity than the commodity just sold.
We have clients who bought cocoa puts in the spring, wheat puts in May, bull spread beans, etc.
Many of you are going to have to liquidate basis contracts and move corn and/or beans from the bin in the coming weeks. Buying futures or call options in that same commodity may not be the best place to invest money to increase your revenue in 2024. However, prices are at nearly a four year low and Gann Cycles expect a major low this month, so re-owning corn, beans, and wheat on paper might be a good investment. Another good investment could be in the stock market.