So, I'm looking for advice

[Ron43]

I am a small Farmer. I've got roughly 7 thousand old corn left to market. What would you guys reccomend now? Hold on for 7? higher? or lower

[Pupdaddy]

Big or small, it doesn't matter, you have to market it for a profit. After today's action...I'm looking for a setback in the overnights (or shall I say overtheweekends..) or early next week...then a strong run at somewhere in the 6.80 May futures price to be the next area of resistance. That's where we came from earlier this year..and I think we can revisit it again now. If we get a planting time bump..you may see 7.00 vs. May futures...but I'm not getting my hopes up.

[Red Steele]

Using historical trendlines, you should be able to buy about 7.5 acres of top producing cropland for the value of that corn. That should give you a goal.

[NDf]

Ron I would hold the old crop and sell the same amount of new crop on a rally of the new crop to $5.70 dec futures. You are basically bull spreading the corn market right now the spread for july/dec corn is at around a dollar I look for the spread to top out at least as high as last year of around $ 1.30 maybe higher because we have less corn stocks now than last summer. Thats my plan anyway on the remaining bushels I've got I will sell old crop when I think the spread has topped out. Cash flow  needs and the amount of new crop  you already have sold will determine if you would want to follow my thinking.

[Ron43]

I do see what you are saying, I hvent sold any new crop as of yet, so are you saying hold the 7000 as insurance on the new crop I would sell? Im confused

[NDf · Accepted solution]

My feeeling is that the upside is limited in the new crop because of the 96 million acre number  while old crop could get quite interesting not only with the futures market, but also in the cash market so why not take advatage of it by keeping the old crop corn and if you think you need to sell to put a floor on a certain amount of bushels sell the new crop .Some pitfalls will be it takes more timing skills and you will have to make another sale to get rid of the old crop.before the old crop/ new crop spread tanks