October 17, 2025
2025 production: 100,000 bushels
Objective: Seek strategies that balance risk and reward in the current market environment. Hold no unpriced corn beyond July 1, 2026.
- 20,000 bushels (October 17 cash price @ $3.68/bu., Dec’25 @ $4.22½): No storage! Deliver at the harvest price of $3.68/bu.
- 60,000 bushels: Place in storage and sell the carry with a sale of 12 July contracts at $4.50¾/bu. I expect a harvest basis of 83 cents under the July contract to narrow to 30 cents under July by next spring. Exit ¬plan: Unwind my storage hedge when the cash basis reaches 30 cents under the July contract, or by June 30. If basis reaches 30 under the July, the final price will be $4.20¾/bu. [$4.50¾ July + (-$0.30) basis)]
- 20,000 bushels (October 17 cash price @ $3.68/bu.): Place in storage and hold for higher prices. Exit plan: Sell 5,000 bushels @ $4.30, 5,000 bushels at $4.50, 5,000 bushels at $4.70 and the last 5,000 bushels at $4.90/bu. Risk no more than 40 cents/bu. under the harvest price – sell if the price falls below $3.28. Bushels unsold at the end of April will be sold in equal increments, mid-May through mid-June.
Execution of the Post-Harvest Marketing Plan
October 17, 2025: Dec’25 futures hit their calendar year high in February. Markets don’t make highs in February, but they did this year. Hindsight says I should have made a sale or two during a very modest spring bulge in prices but I did not act. Large positive carrying charges have returned and the opportunity to sell a large carry is too good to pass on. The question is whether the basis can narrow to 30 cents under the July by spring. It did not get there last year, but I am optimistic given strong corn demand. I’m holding the remaining 20,000 bushels of unpriced corn in storage. This is my wild card play, assuming our country actually makes progress in repairing trade ties.
May 20, 2026: I still have 20,000 bushels of unpriced corn in storage. Despite higher prices since harvest, I have not reached any of my price objectives. It’s time to start my graceful exit. Starting today, I will price and deliver 4,000 bushels of corn over the next five Wednesdays. Today I price and deliver 4,000 bushels at the current cash price of $4.06/bushel.
May 27, 2026: Price and deliver 4,000 bushels at the current cash price of $3.93/bushel.
June 3, 2026: Price and deliver 4,000 bushels at the current cash price of $3.80/bushel.
June 10, 2026: Price and deliver 4,000 bushels at the current cash price of $3.74/bushel.
June 17, 2026: Price and deliver 4,000 bushels at the current cash price of $3.76/bushel.
June 30, 2026: Times up! I need to unwind my hedge by buying back the July contract and selling my remaining 60,000 bushels of corn held in storage. The basis today is 44 cents under the July contract. My final price is $4.06¾/bu. [$4.50¾ July + (-$0.44) basis)].